84 minute read
Digital Solutions
COMMENT
Caspar Herzberg, COO AVEVA
ILLUSTRATION: GETTY IMAGES/SESAME
A well-designed industrial so tware strategy drives sustainable value creation, enabling diverse industries to save energy, reduce emissions and waste, boost circularity throughout engineering and operations, and maximise sustainable performance.
HERE ARE WAYS THAT DIGITAL SOLUTIONS CAN HELP BUSINESSES REALISE THEIR NETZERO TARGETS...
The tools to support net zero are already here – let’s use them
From carbon measurement to hyper effi cient value chains, digital solutions can enable industrial fi rms to simultaneously boost productivity and decarbonise
The world is on the cusp of transformation. Global leaders are faced with a golden – yet short-term – window of opportunity to help shape a sustainable planet.
Transitioning to a carbon-free world is one of the greatest challenges businesses face today. Achieving international net-zero emissions by 2050 is an ambitious and critical target that demands a global economic transformation.
But the good news is so tware already exists today to allow companies to reach net zero – and it is a ordable and accessible.
Data-led industrial solutions are already helping support the energy transition, while delivering signifi cant productivity and sustainability gains across the spectrum.
Analysis from Accenture reveals that today’s digital technologies could drive up to 20 per cent of the 2050 reduction needed to hit the International Energy Agency’s (IEA) net-zero trajectories in the energy, materials and mobility industries.
Early technology adopters have already witnessed how digital transformation can slash costs by up to 30 per cent, while driving production and yield improvements at rates of up to 10 per cent, according to McKinsey.
IMPROVE OPERATIONAL EFFICIENCIES
E ciency remains the biggest sustainability driver. This is because equipment downtime can deplete productivity, profi tability, and also resource e ciency. Advance warning of potential equipment failures helps to mitigate issues, while also driving long-term sustainability.
A case in point is biodiesel producer REG. Until recently, the Iowa-based company used an external vendor to detect performance anomalies in the centrifuge units that support its clean fuel production. The vendor suggests optimal maintenance tweaks that have minimal downtime, cost and revenue impacts on production lines. However, until recently this centrifuge data was tracked manually, meaning that the vendor’s analyses and suggestions were o ten outdated before they could be implemented.
Today, REG has implemented a scalable cloud platform which integrates both system and vendor operational data in a two-way fl ow: anomalies are now detected, and issues identifi ed, in near-real time. This type of set up can reduce reactivity and minimise equipment downtime by up to 90 per cent.
INTRODUCE CARBON EMISSIONS MODELLING
Global hydrocarbons giant BP aims to transition from an international oil company to an integrated energy company by 2030, and achieve net zero across its operations on an absolute basis by 2050. To achieve its ambitious targets, BP must accurately gauge how every operation a ects its carbon emissions. The oil company already drives business value by using cloud so tware to identify the optimal oil balance and operating plans for its refi neries and downstream networks. The company’s single integrated so tware suite allows its teams to make quick, accurate decisions in response to real-time market and operating conditions. The fi rm’s analysts can now get answers in just over three minutes, rather than seven hours. Now, BP has added CO₂ modelling capabilities into its incumbent solution. This additional modelling layer empowers BP to
INTEGRATING DATA WITH RIGOROUS MODELLING AND AI, AND SHARING THAT OVER THE CLOUD ENABLES FIRMS TO TRANSFORM THE WAY THE ENERGY INDUSTRY OPERATES
understand and evaluate the impact of CO₂ emissions for different scenarios, and to identify the most carbon-intensive aspects of any scenario. Energy can now be produced with minimal CO₂ impact, representing a significant step towards net zero.
WIN-WIN SCENARIOS
The right software programme can also help power companies facilitate compliance with ESG regulations and support partners’ net-zero commitments.
A case in point is US power leader Dominion Energy, which gathers and shares data from across its North American grid network. Its cloud-based information management platform allows Dominion’s team to turn power grid data into a new source of revenue.
Dominion’s performance data lets its customers track their sustainability commitments and prove the firm is using energy from low-carbon sources. This, in turn, enables Dominion’s customers to provide proof of their own net-zero commitments to investors and environmental, social and governance (ESG) auditors. As a result, Dominion is helping to accelerate the low carbon energy transition in North America, while also boosting its profitability and realising a 50 per cent increase in speed-to-market for vital environmental data.
UNLOCKING THE ‘NETWORK’ EFFECT
Delivering net zero requires energy sector companies to prioritise decarbonised value chains without sacrificing performance. Unifying both priorities into a single-window interface supports organisational decision-making at every level, while also giving valued business suppliers and partners access to transparent, informative data.
Integrating data with rigorous modelling and artificial intelligence, and sharing that over the cloud enables firms to transform the way the energy industry operates, empowering companies to track and drive decarbonisation through complex value chains across the industrial ecosystem.
Today’s tools offer up a tremendous opportunity for industries to operate collectively to build new and more sustainable business models in our connected industrial economy.
This coming decade of action is charged with the opportunity to accelerate the path to net zero. Companies that proactively embed data throughout their value chain will be the first to reap the opportunities of our new era. COMMENT
Waste to worthy
Advanced biofuels, made from plant-based waste material, can help decarbonise the road, aviation and maritime sectors
It would be short sighted to suggest that there is a single unified answer to the world’s decarbonisation problems. From the electrification of consumer cars to renewable energies, innovative energy storage and advanced fuels, each will play a crucial role on the path to net zero.
However, for the planet to reach net neutrality by 2050 and for us to realistically meet those targets, we need solutions which are actionable and scalable at the present time.
According to the United Nations Environment Programme, the transport sector contributes approximately one quarter of all energy related greenhouse gas (GHG) emissions. Advanced fuels – also known as second generation biofuels – are a clear contender to help decarbonise that sector, today.
THE IMPORTANCE OF FEEDSTOCK PROVENANCE When speaking of biofuels, it is important to make
Nicholas Ball, CEO - XFuel
a clear distinction between the di erent types of feedstocks used in fuel production.
A feedstock is the raw ingredient used to create a biofuel. For biofuels to fulfi ll their role and e ciently support the decarbonisation of the transport sector, the feedstock used in clean fuel production must be sustainably sourced, available in abundance and, preferably, locally sourced. This would ensure the fuel’s green credentials, as well as its ability to scale in order to meet current and growing demand.
Traditional, fi rst-generation biofuels have become increasingly problematic due to their reliance on food crops as feedstock. The use of crops means that fi rst generation biofuels have the potential to adversely impact food security as food production fi nds itself competing with crops for biofuels. This comes in addition to a ecting land use, harming biodiversity and, in certain cases, contributing to deforestation. Furthermore, volatile grain commodity markets o ten impact prices, as seen with the current geopolitical situation with Ukraine and Russia.
Advanced second generation biofuels avoid these limitations by using waste rather than crops as feedstock.
LIGNOCELLULOSIC WASTE, THE WASTE OF CHOICE Lignocellulosic biomass is a plant-based material which happens to be the most abundant raw material on earth. Its waste material is not used for food and is the feedstock of choice for advanced fuels.
Lignocellulosic waste can come in the shape of waste from the manufacturing, construction, agriculture, or forestry sectors. It can include the residue, shavings and waste, which are not used when creating everyday home essentials such as a kitchen cabinet, or olive pips and nut shells that are removed from processing agricultural products and which would otherwise be disposed of or incinerated.
According to a recent study by consulting fi rm McKinsey, new advanced feedstocks will be necessary to meet the growing demand for sustainable fuels. In its analysis of fuel demand by feedstock type, the study found that lignocellulosic waste will account for a third of all sustainable fuel feedstock by 2040.
Beyond their sustainability and scalability potential, advanced fuels already exist in the form of drop-in replacements to their fossil fuel counterparts. This means that the physical and chemical characteristics of such fuels allow them to be used with existing engines and infrastructure, without the need for modifi cation or additional capital.
NOT ALL WASTE IS CREATED EQUAL Currently, the most widely available secondgeneration biofuel on the market is hydrotreated vegetable oil (HVO). This liquid fuel is derived from waste vegetable oils, such as sunfl ower or palm oil, and animal fats. These oils are di cult to collect at scale and hence would fail to replace a signifi cant amount of fossil fuels.
What’s more, the limited supply of HVOs has driven prices up considerably, with prices up to 2.5 times higher than pre-2021 levels, analysis by campaign group Transport & Environment has revealed. This has contributed to vegetable oils showing the highest price increases amongst all food products globally, even before the UkraineRussia crisis.
When it comes to advancing climate goals on the road to net zero, it is all hands on deck. Yet it is clear that sustainable advanced fuels must play a core role on that journey, by bringing sustainable scalable fuels to the table. They o er a fast and practical solution to decarbonising the transport sector today – this must not be overlooked.
THE LIMITED SUPPLY OF HVOS HAS DRIVEN PRICES UP CONSIDERABLY, WITH PRICES UP TO 2.5 TIMES HIGHER
THAN PRE-2021 LEVELS
LIGNOCELLULOSIC BIOMASS IS A PLANT-BASED MATERIAL WHICH HAPPENS TO BE THE MOST ABUNDANT RAW MATERIAL ON EARTH Currently, the most widely available second-generation biofuel on the market is hydrotreated vegetable oil (HVO). This liquid fuel is derived from waste vegetable oils, such as sunfl ower or palm oil, and animal fats
The future of packaging
There are 8.3 billion tonnes of plastics in the world – 6.3 billion tonnes constitute trash. Plastic represents 44 per cent of global packaging consumption. Its production started in the 50s and has been exponentially growing for the past seven decades, under the motto “Plastic is Fantastic”. Yet, in 2020, there was a sudden change – plastic production started to go down. The decrease was mostly from the European market.
We’ve now become more aware that the use of plastic is harmful to our planet. As the value proposition of plastic cannot be easily replicated, we are looking for alternatives to improve its circularity and replacing part of it with easier-to-recycle materials such as glass, aluminium and paper. New bioplastics are also seeing the light of day.
What will be the future of packaging? How will we achieve shi ting to a more ecological solution? Which solutions are the most credible ones?
TOWARDS PLASTIC CIRCULARITY
As plastic has become a central material for packaging and as it is hard to replace, the most straightforward option would be to improve its circularity. By redesigning and rethinking packages in the fi rst place, they could be easier to collect and recycle. In 2020, 10.2 million tonnes of plastic were sent to recycling facilities globally. Yet, 93 per cent of the global polymer demand is virgin plastic. The rest are mostly plastics recycled mechanically. The process of mechanical recycling itself does not su ce a total shi t into circularity, as it is more expensive than virgin plastic while having fewer applications. To compensate for this lack of e ciency, the industry has been investing in molecular recycling, also known as advanced recycling. This method is commonly breaking down and purifying plastic waste to make it odourless, colourless and deprived of contaminants. In other words, advanced recycling is looking for a solution to make a virgin-like resin. The process is achieved by using chemicals, pyrolysis or other non-chemical substitutes.
The use of advanced recycling is expected to grow to become up to 10 per cent of the annual plastic use by 2040. Yet, one question mark remains. Is advanced recycling really sustainable? This process can be very consuming in terms of energy or very polluting in terms of chemicals used in the process. In the following years, the sector will require a considerable investment and its sustainability would have to be evaluated.
SUBSTITUTES TO PLASTIC: THE OUTSIDERS
While the plastic industry struggles to close its circularity loop, three other sustainable options are available in the packaging industry: glass, aluminium and paper.
Unlike plastic which is a pretty young invention in the history of humankind, glass was discovered centuries ago. The fi rst hollow glass container was created by the Egyptians in 1500 B.C. Its use was highly democratised during the Roman Empire, with the invention of the blowpipe. It was the beginning of glass as we know it today.
Glass is a simple material, yet it has many great properties. It is infi nitely recyclable without loss of material, it is odourless and thus infi nitely reusable. Its circularity loop has been closed long ago. At the
GLASS STILL HAS A SIGNIFICANT SHARE IN THE PACKAGING INDUSTRY WITH A MARKET SIZE OF OVER $50BN
COMMENT
the end of the 19th century, the fi rst milk glass bottle was patented and along with it emerged milkmen.
They would come to one’s door, bring fresh milk in the morning and take empty bottles to reuse. It was a simple circular economy. We actually stopped using this closed loop with the appearance of refrigerators in the 30s. It is only now that we are getting back to its simplicity with the apparition of bulk stores. Glass still has a signifi cant share in the packaging industry with a market size of over $50bn.
While glass is o ten seen as a viable sustainable option, its recycling is more expensive and less ecological than the one of aluminium. Due to the weight of glass, emissions of transporting and cooling cans are 35 per cent to 49 per cent lower than the one of glass bottles. For this reason, since the 80s, the secondary market of recycled aluminium has been growing. As a result, almost 75 per cent of aluminium ever produced globally is still in use today. Aluminium cans on the market today contain 73 per cent of recycled content, which is 12 times more than PET and three times more than glass.
The market for aluminium has a value over $50bn. With growth at a CAGR of 4.4 per cent, aluminium is a sustainable option which is getting more and more adopted by fi nal consumers.
Paper is also a good sustainable option. It can be recycled fi ve to seven times. In the US, the recycling rate is 68 per cent. Yet, unlike aluminium, paper is not infi nitely reusable; we will always need more raw material to provide resources. The pulp and paper industry is also known to have a high water consumption. To produce one sheet of A4 paper, the industry requires 20 litres of water. The overall paper market is expected to grow at a low to mid-single digit compounded annual growth rate, or CAGR. Still, paper appears as a more sustainable option than plastic. Its market share in the packaging sector is increasing, as we see more and more brands switching from plastic to paper bags and wrapping paper. For example, Danone Waters aims to eliminate the use of virgin plastic from its packaging. To do so, they introduced Combismile, a paper bottle by Swiss leader SIG Combibloc.
BIO-PLASTIC, THE NEWCOMER
On the other side of classic materials, newcomers re-invented plastic in a more sustainable way, to create bio-plastic. There are two main attributes to biopolymers making them greener than their conventional alternative: bio-sourcing and biodegradability. The total capacity of the market to this date is 2.42 million tonnes and almost half of it is in Asia. One third of the bio-polymers are bio-sourced, but not bio-degradable, and two thirds are biodegradable.
Bio-sourced polymer manufacturing requires any type of carbon source. Nowadays, the fi rst sources are crops and oils, which makes it attached to a commoditytype cost variation. While some biopolymers are sourced from food supplies, others can be produced using industrial waste or crop scraps, avoiding the issue of using food that is suitable for humans or animals . The next generation, which is until now a bit of a science-fi ction, will be directly made from carbon molecules.
Today, the most commonly produced biopolymers are PLA and PBAT. Their production cost is competitive, but their price is kept higher than the one of traditional polymers. PBAT is a fossil-sourced biodegradable so t plastic. PLA is a rigid plastic resembling PET.
The market of PLA is capital intensive; therefore, it is mainly composed of big players, who nowadays have no interest in growing outside of the food segment, in order to secure a high price. Bio-degradable plastics should be used only where they make sense and where they add value. Still, for the fi nal consumers, a confusion remains. What does bio-degradable mean? Some polymers, such as PLA, require industrial composting. They need high temperature to degrade, while others, like PBAT, can biocompost. They can be le t in soil and degrade in less than a year.
The downside of bio-polymers is that when they are mixed with other recyclable polymers, they make the recycling process more complicated. Throughout the following years, countries will have to legislate highly on which polymer has to be used for which product and educate the population to recycle their plastics properly to make a di erence.
In the end, maybe the future of packaging will be no packaging at all. As the growing production of plastic is not sustainable anymore, the trend is to going back to fundamentals, and to simpler circular routes. And who knows, maybe someday milkmen will knock at our doors again.
PLASTIC REPRESENTS 44 PER CENT
OF THE GLOBAL PACKAGING CONSUMPTION “THE USE OF ADVANCED RECYCLING IS EXPECTED TO GROW TO BECOME UP TO 10 PER CENT OF THE ANNUAL PLASTIC USE BY 2040. YET, ONE QUESTION MARK REMAINS. IS ADVANCED RECYCLING REALLY SUSTAINABLE?”
Clément Maclou, portfolio manager, ODDO BHF Switzerland
Supporting steps towards sustainability
Dahlia Haleem, partner at elementsix, a UAE-based carbon management fi rm, shares how companies can surmount challenges to start their sustainability journey and why the UAE is on the right path to net zero
What does a carbon management fi rm do? We help businesses manage their carbon emissions; these are greenhouse gas emissions produced through the business’s operations. It’s their impact, or footprint, on the environment. We help companies quantify this impact, or carbon footprint, and then take the steps necessary to reduce it.
Every single activity that you undertake, from driving to the o ce, switching on your laptop, running your email server, or printing out your report, has an associated carbon cost to it, that is, it produces a certain amount of emissions. These emissions are in the form of greenhouse gases – and to keep things simple in the accounting process, we convert everything into CO₂ equivalent, or carbon dioxide equivalent.
By understanding which of your activities are the most carbon intensive, you can put initiatives in place to reduce them, and set targets to aim for.
How do you help companies on their sustainability journey? We believe you need to know where you are in order
USING THE LATEST CLIMATE SCIENCE DATA AND MEASURING TOOLS, WE’RE ABLE TO QUANTIFY A COMPANY’S ACTIVITIES INTO AN AMOUNT OF CO₂ EQUIVALENT to understand where you need to go – every good roadmap needs a starting point. A company’s environmental impact plays a huge role in their ability to be sustainable. The fi rst thing we do for almost every client is conduct a carbon audit, or carbon footprint, an evaluation of all a company’s activities and every emission source associated with them. Using the latest climate science data and measuring tools, we’re able to quantify a company’s activities into an amount of CO₂ equivalent. This sets a baseline by establishing a business-as-usual scenario for the way that a company operates; that is the amount of emissions produced through everything they do from running their o ces, to procuring supplies, to manufacturing and distributing products.
Once this starting point/baseline, is set, we’re able to do two things: 01. Establish where the biggest emission leaks are and even determine how much they are costing a company 02.Have a comparison point to measure future audits against and be able to evaluate the e ectiveness of any emission reduction initiatives implemented.
To work out the most suitable emission reduction initiatives, we always take an economic approach. We need to establish what sort of activity, technology or initiative will reduce the emissions for that company the most, while costing the least – all while giving the best possible long-term returns in the form of energy (utility bills and emissions) savings.
Properly implemented sustainability initiatives will always save you money in the long run – so establishing when and what to implement is key to developing a proper emission reduction plan.
What are some of the key industries you work with? Being based in the UAE we’ve had experience and exposure to all of the major sectors, including real estate, oil and gas, hospitality and retail, manufacturing, transportation and waste.
You recently joined the United Nations Global Compact (UNGC). What does it entail and why should companies join the initiative? The UNGC is a strategic initiative that supports global companies that are committed to responsible business practices. It is a principle-based framework for businesses, stating 10 principles in the areas of human rights, labour, the environment and
anti-corruption. It is now the world’s largest corporate sustainability initiative with 13,000 corporate participants over across countries.
The UAE Network currently has 178 participating companies from an array of di erent sectors, including banking, transportation and retail featuring brands such as Majid Al Futtaim, Emirates NBD and e&.
One of the founding principles behind elementsix is ethics and the way in which we treat the people we work with. We wanted to develop a consulting business model that allows us to provide the best expert advice and value to our clients while prioritising the work-life balance and wellness of our team. We found that these values aligned very naturally with the UNGC’s 10 principles. When we combined that with our e orts to reduce emissions, not only continually in our own business operations, but also through our services to the private and public sector in carbon management consulting, joining the pact seemed like an obvious step for us.
How would you rate the UAE’s strategy and actions to be “net zero” by 2050? The last decade has seen the UAE really taking massive strides to green its economy, and in all the right areas. Greening an electricity grid will always play a huge role in a country’s ability to massively cut down on its emissions. Carbon emission produced from generating electricity by burning fossil fuels accounts for over 40 per cent of the world’s total.
By cleaning its grid through the use of solar and other clean energy sources, the UAE has prioritised the biggest emission sources fi rst, as they correctly should. The UAE’s Energy Plan for 2050 envisages the production of clean energy by 44 per cent by 2050, reducing the country’s carbon footprint from power generation by 70 per cent.
When the UAE announced its 2050 Net Zero Strategy in 2021, we predicted that legislation of some sort would soon follow. We always recommend to our clients to take action now, make the changes and reduce your emissions now, even while its voluntary – because at some point in the future, mandates are likely to come, and then you’ll have to take more aggressive, potentially more expensive action, to meet the demands. The recent amendment of the UAE’s second Nationally Determined Contribution (NDC) to a more aggressive emission reduction target, coupled with sector-specifi c reduction targets, is supporting this movement also. A ter all, if the UAE is to reach its commendable net-zero target, it’s going to need everyone to do their part to get there.
What are the key challenges that impede companies from adopting a sustainability strategy? There is one dominant challenge that we fi nd, no matter how big or how established a company is, to adopting any kind of sustainability strategy, and that is: where do I start?
It’s easy to get overwhelmed with the amount of climate change information we are bombarded with these days, and people o ten just genuinely don’t know how to get going on their own sustainability journey. It’s why we adopt the following “measure, report, reduce, repeat” approach to any company that we work with.
MEASURE: Establish where you are in your sustainability maturity. Understand the impact you are having on the environment you operate in. How are you doing compared to your peers? How are you doing compared to industry front-runners? We o ten hear companies say: “We had no idea that X activity was producing so many emissions”, and that’s a great way to set your focus and your journey, in the right direction.
REPORT: Transparency is key. Put out a fi rst report on your current impact and performance. Don’t shy away from the bad numbers. It’s a journey we are all on together. Say: “This is how we’re doing, and this is how we plan to do better.” It bolsters support and loyalty from stakeholders and has been proven to increase investor confi dence and subsequent investment.
REDUCE: Once you’ve established how much impact each activity is having, you can implement the most economically viable reduction measures to reduce it.
REPEAT: Measure again a ter the new initiatives are in place. Did your impact improve? What else did you learn since your previous report?
With this approach, every company, big or small, private or public, can start making headway on their own sustainability journey.
Dahlia Haleem
GREENING AN ELECTRICITY GRID WILL ALWAYS PLAY A HUGE ROLE IN A COUNTRY’S ABILITY TO MASSIVELY CUT DOWN ON ITS EMISSIONS
THE UAE’S ENERGY PLAN FOR 2050 ENVISAGES THE PRODUCTION OF CLEAN ENERGY BY 44 PER CENT BY 2050, REDUCING THE COUNTRY’S CARBON FOOTPRINT FROM POWER GENERATION BY 70 PER CENT INTERVIEW
REIMAGINING PLASTICS
TO ENABLE GLOBAL CIRCULARITY, UAE-BASED REBOUND HAS LAUNCHED A GLOBAL B2B DIGITAL TRADING PLATFORM FOR RECYCLED PLASTIC
WORDS: ZAINAB MANSOOR
P
lastics and its relationship with the modern world cuts both ways. While it is an extremely useful material for society and serves several purposes, its consumption and subsequent disposal are endangering the environment and impacting the world in more ways than one.
Despite pledges on organisational and national levels, adverse climatic changes and grim forecasts have called for renewed commitment on multiple fronts. Green investments as well as greater cross-border cooperation are some of the examples to preclude a looming environmental crisis.
According to an OECD report, the annual production of plastics has doubled over the last two decades, from 234 million tonnes (Mt) in 2000 to 460 Mt in 2019. Meanwhile, plastic waste has more than doubled, from 156 Mt in 2000 to 353 Mt in 2019, of which only 9 per cent was recycled. As much as 19 per cent was incinerated, almost 50 per cent went to sanitary landfi lls and the residual 22 per cent was disposed of in uncontrolled dumpsites, burned or leaked into the environment. This suggests that the current plastics lifecycle is anything but sustainable.
DUBAI LAUNCHED A CITYWIDE SUSTAINABILITY MOVEMENT IN FEBRUARY TO ENCOURAGE THE USE OF REFILLABLE BOTTLES THROUGH THE INSTALLATION OF DRINKING WATER STATIONS
ABU DHABI INTRODUCED A RANGE OF INSTALLATIONS AT HIGH FOOTFALL LOCATIONS TO COLLECT SINGLE-USE PLASTIC BOTTLES FOR RECYCLING
Maryam Al Mansoori, general manager, Rebound RPX creates new economic opportunities and a point of market entry for most of the world’s communities which do not have domestic capacity to process or use plastic feedstock in their own manufacturing levels”
LOCAL INITIATIVES The UAE has taken key initiatives to mitigate the usage of plastics. Dubai launched a citywide sustainability movement in February to encourage the use of refi llable bottles through the installation of drinking water stations. By September, the initiative had seen a reduction in the usage of an equivalent of over 3.5 million 500ml singleuse plastic water bottles. The neighbouring emirate of Abu Dhabi also announced the introduction of a range of installations at high footfall locations to collect singleuse plastic bottles for recycling. It also banned the use of single-use plastic bags from June 1, while Dubai levied a Dhs0.25 tari per bag a month later.
However, addressing plastic products and their impact from a lifecycle perspective is equally imperative. To enable global circularity, Rebound, a subsidiary of Abu Dhabi-based International Holding Company launched a global B2B digital trading platform for recycled plastics.
“As the world’s plastics market is forecast to reach $46.6bn by 2025, Rebound Plastic Exchange (RPX) serves as a global business-to-business marketplace to trade recycled plastics,” says Maryam Al Mansoori, general manager, Rebound.
“RPX creates new economic opportunities and a point of market entry for most of the world’s communities which do not have domestic capacity to process or use plastic feedstock in their own manufacturing levels. It incentivises new processors to trade material, fostering growth in the recycling industry while creating substantial employment opportunities along the way,” Al Mansoori adds. RISING DEMAND Demand for recycled plastics is growing rapidly around the
globe as governments and businesses move to curb the environmental and societal impacts of plastic waste, Al Mansoori added. “The circular ecosystem provides RPX’s proprietor Rebound the opportunity to facilitate the recycling of fi ve million tonnes of plastic by 2025. “Since its launch, we have received an overwhelming response and have members registered on RPX from the Middle East, North America, Latin America, India, Southeast Asia and Europe. Many other industry players have [also] expressed an interest in subscribing.” However, during cross-border trades, how will the exchange ensure transparency and product integrity? “RPX deploys inspectors and other specifi cations to ensure the quality of products traded through its platform and the legitimacy of buyers and sellers. Through its certifi cation protocol, Rebound positions trust and quality at the core of its processes, starting from onboarding members to completing the transaction. In its next phases, the platform will further incorporate automated systems to verify product authenticity and quality,” Al Mansoori adds. MOVING AHEAD Plastics consumption is projected to increase in the future. Subsequently, plastic waste produced globally is set to almost treble by 2060, with around half ending up in landfi ll and less than a fi th recycled, another OECD report revealed. Therefore, reducing plastics-related DUBAI’S pollution requires a concerted e ort to INITIATIVE TO TO USE REFILLABLE curb production, enhance recycling and BOTTLES HAD SEEN A improve waste collection and manage-
REDUCTION IN THE USAGE OF OVER 3.5 MILLION 500ML ment. More so, setting recycling targets and investing in related technologies, SINGLE-USE PLASTIC encouraging sustainable waste man-
WATER BOTTLES agement practices as well as reducing uncontrollable disposal will help underpin the recycled plastics market.
VER STOR Y | PEPS I O C C O
A POSITIVE OUTLOOK
EUGENE WILLEMSEN, CEO – AFRICA, MIDDLE EAST AND SOUTH ASIA OF PEPSICO, TELLS GULF BUSINESS HOW THE COMPANY IS SHAPING ITS AMESA BUSINESS WITH SUSTAINABILITY AND REGENERATIVE AGRICULTURE INITIATIVES, AND WHY COP27 CAN HELP DRIVE CHANGE
WORDS: NEESHA SALIAN | PHOTOS: MUSTUFA ABIDI
As one of the world’s largest food and beverage companies, PepsiCo is no stranger to scale. One of the popular facts you are most likely to chance upon is that its products – across 22 brands – are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. That said if you stop to think about it: every time you enjoy a bowl of your favourite cereal and a glass of refreshing juice, or a flavourful pack of potato crips and a cool, fizzy soda, there’s a complex supply chain, involving farmers, producers, transport companies and retailers, working around the clock to bring these products to you. However, such popularity brings with it the responsibility to minimise the impact on the environment. A year since its launch, the PepsiCo Positive (pep+) strategy has been the turning point for the company and even more so for its operations in Africa, Middle East and South Asia (AMESA). Through pep+, the company is committed to using its scale to build a more resilient food system, be a consistent top market performer, attract the right talent and be a force for good by doing what’s right for people and the planet. For a company that sources 25 crops and ingredients from over seven million acres of farmland in 30 different counties while supporting 100,000 agriculture jobs worldwide, pep+ is and will continue to play a significant role in driving its future.
Eugene Willemsen, CEO – AMESA PepsiCo, who has been with the company for 27 years, says, “I have seen the organisation striving to become better, stronger and more sustainable for the business and the communities it operates in. From being a side project to becoming the future of business, sustainability has become the bottom line for business resilience. pep+ connects the future of our business with the future of our planet, from sourcing ingredients to making and selling our products more sustainably. We are ‘Winning with pep+’ because the end-to-end transformation strategy puts sustainability and human capital at the heart of creating shared value.”
EARLIER THIS YEAR, IN THE CAPACITY OF EXPO 2020 DUBAI’S OFFICIAL BEVERAGE AND SNACK PARTNER, PEPSICO HELPED TO REDUCE THE USE OF SINGLE-USE PLASTIC, DIVERTED AT LEAST 85 PER CENT OF ON-SITE WASTE AND AVOIDED MORE THAN 500,000 PLASTIC BOTTLES THROUGH AQUAFINA WATER STATIONS AS WELL AS BY REPLACING PLASTIC BOTTLES WITH AQUAFINA ALUMINIUM CANS AND GLASS BOTTLES”
SCOPE OF PEP+
Willemsen has played a key role in driving the adoption of pep+ across the company’s supply chain in the AMESA region. “We are proud to have embedded our marquee sustainability strategy in every aspect of our business across the three pillars of Positive Agriculture, Positive Value Chain and Positive Choices. “We remain an agricultural company at our core – a steady, sustainable supply of crops is central to our business. Under our Positive Agriculture pillar, we focus on spreading regenerative practices to restore the earth across land equal to our entire agricultural footprint and sustainably source key crops and ingredients. As per 2022’s estimates, PepsiCo in AMESA has engaged two million acres to implement regenerative agriculture practices and we aim to actively engage with around 250,000 people in livelihood improvement programmes across our potato agriculture supply chain by 2030.” As part of the commitment to create a Positive Value Chain, the company is focused on being ‘Net Water Positive’ by 2030 and has targeted the achievement of net-zero emissions by 2040, one decade earlier than called for in the Paris Agreement. “We have avoided the use of approximately fi ve billion litres of water in 2021 compared to 2020 by changing the way farmers irrigate crops, focusing on at-risk locations and improving water-use efficiency in the AMESA region,” adds Willemsen.
Since 2021, PepsiCo AMESA estimates that it has improved water e ciency by 50 per cent in companyowned high-water risk plants across the region (excluding its newly acquired Pioneer Foods facilities in sub-Saharan Africa). PepsiCo AMESA further estimates that in 2021, it has replenished 2.5 billion litres of water through community partnership projects in six high-risk watershed areas through science-based interventions.
PepsiCo AMESA is gearing to expand renewable electricity sourcing to 100 per cent of its manufacturing electricity needs for company-owned sites by 2030 through regulatory unlocks and multi-stakeholder partnerships. “We drove our climate agenda within our manufacturing operations by achieving 12 per cent energy use reduction versus 2015 and expanding solar deployment across 17 sites,” says Willemsen.
Within the Positive Choices pillar, the company has been leveraging its connection with its consumers, suppliers, partners, and the scale and reach of its global brands – all to drive meaningful positive impact at scale. “Being one of the global leaders in an industry driven by consumers, we have been evolving our portfolio of food and beverage products to make them better for the planet and its people,” he adds.
Photos supplied
PEPSIC O | Y R VER ST O
PARTNERSHIPS FOR FARMER EMPOWERMENT
Starting in 2018, the PepsiCo Foundation has invested over $5.7m in CARE’s She Feeds the World programme, supporting 538,000 female farmers in mainly Egypt and Uganda, with a major focus on economically empowering women essential in making the entire food system stronger. Asmaa Mohamed Abdullah, one of the female farmers who is part of the programme in Egypt’s Beni Suef says, “PepsiCo and CARE have supported me, step-by-step in every way possible, in my potato farming techniques, helping me achieve a stable source of income. ”
Globally, PepsiCo’s fi ve-year $20m partnership with USAID under the Women’s Global Development and Prosperity (W-GDP) Initiative supports the empowerment of women in agriculture and helps build a more sustainable food system. In Egypt, this partnership is expected to accelerate the adoption of regenerative agricultural practices and achieve farmer self-sufficiency across Chipsy’s entire supply chain by 2025. Mohamed Farrag El Zoghby, an Egyptian farmer who is part of the programme, says, “I am proud to be cultivating potatoes that reach most of the Egyptian society through my partnership with Chipsy. Without being part of the sustainable farming programme, I would not have increased my production or the quality of my yield. I have acquired the knowledge of modern irrigation systems, protected my farm, decreased my cost and above all made sure to follow decent workers’ rights for a better farming community.”
The $33m Kgodiso Development Fund, established as one of PepsiCo sub-Saharan Africa’s public interest commitments, is mandated to look at creating ‘shared value’ solutions that ultimately help build a sustainable food system by increasing inclusivity in agriculture, creating local employment opportunities, and increasing local procurement and supplier diversity.
TACKLING FOOD SECURITY
The Food and Agriculture Organization of the United Nations’ 2020 report, states that nearly 690 million people – or 8.9 per cent of the global population – are hungry, up by nearly 60 million in fi ve years. The Intergovernmental Panel on Climate Change reports that agricultural growth globally has slowed due to climate change and Africa has been among the most a ected regions, with a 34 per cent reduction in growth in agricultural production.
Willemsen says, “As a leading global food and beverage company, we have a critical role to play in realising a more equitable global food system to ensure the communities we serve are free from hunger and malnutrition.”
As a contributor to meeting pep+ commitments, PepsiCo’s ‘Food for Good’ programme is partnering with communities worldwide with the aspiration of making nutritious food accessible to 50 million people by 2030. It has also participated in the Zero Hunger Private Sector Pledge, committing to invest $100m in positive agriculture initiatives by 2030 to help minimise waste and seek to create a more resilient food supply.
While PepsiCo Foundation has invested over $5.5m in AMESA’s food security programmes since 2018, the Foundation has invested over $1.8m in Africa alone, reaching out to 2.6 million people with nutritious food. Another initiative, the Pioneer Foods School Breakfast Programme serves breakfast to over 34,000 children in 35 schools every day of the calendar, across seven provinces in South Africa since 2015. The $250,000 Nigeria Food Clique fund provides 600,000 nutritious meals to Nigeria’s hardest-hit communities. Recently, the company, in partnership with PepsiCo Foundation, has contributed fi ve million meals to support relief e orts in Pakistan following the devastating fl oods that have impacted the country.
TAKING ON WATER STEWARDSHIP
According to World Resources Institute, many African countries have extremely high-water risk, including vulnerability to droughts and fl oods, seasonal variability, and competition for available water. Already, one in every three people across Africa faces water scarcity. Nearly 400 million people in sub-Saharan Africa are denied even a basic drinking water supply.
PEPSICO SOURCES 25 CROPS
AND INGREDIENTS FROM OVER 7 MILLION ACRES
OF FARMLAND IN 30 DIFFERENT COUNTRIES
WHILE SUPPORTING 100,000 AGRICULTURE JOBS
WORLDWIDE
C OVER ST O R Y | PEPS
PEPSICO SUPPORTED THE COLLECTION AND RECYCLING OF 107,000 TONNES
OF PLASTIC BOTTLES AND 19,000 TONNES
OF MULTI-LAYERED PLASTIC FILMS ACROSS 7 COUNTRIES AS PER 2021 ESTIMATES
Willemsen says, “We have adopted an approach to watershed management in the region that includes initiatives designed to improve water-use efficiency across our value chain: on farms and in manufacturing facilities; replenishing water and improving the health of the local watersheds that are most at risk and where we operate; and increasing safe water access for communities that face water insecurity, including scarcity and unsafe water sources.”
PepsiCo is helping farmers in Africa install water-saving irrigation technology and enhance irrigation practices in efforts to improve agricultural water-use efficiency by 15 -30 per cent by 2025. As a result, potato irrigation water use in high-risk areas of Egypt and South Africa improved, with the company avoiding the use of approximately 0.7 billion litres of water in 2021. Additionally, PepsiCo AMESA is working towards achieving water-use efficiency in operations by implementing best-in-class water-use standards across facilities. While PepsiCo in Egypt and South Africa have replenished more than 1.5 billion litres of water in high-risk watersheds in 2021 - equal to 38 per cent of water consumed in our company-owned manufacturing facilities in high-risk watersheds, PepsiCo in Jordan has already achieved net-water positive status.
In 2021, the PepsiCo Foundation continued to expand the reach of its safe water access programme, providing safe water access to more than 68 million people since 2006, with a goal to reach 100 million by 2030. To continue to advance this goal, the Foundation’s investments with WaterAid and World Wildlife Fund are focused on subSaharan Africa and will help improve water infrastructure, build new water supply systems and equitable sanitation facilities, and promote hygiene education.
CUTTING PLASTIC WASTE
The pep+ ambition aims to design 100 per cent of its packaging to be recyclable, compostable, biodegradable or reusable by 2025 and to cut virgin plastic from nonrenewable sources per serving across its global beverages and convenient foods portfolio by 50 per cent by 2030. Marking one year of pep+, PepsiCo launches recycled plastic (rPET) bottles across some beverage brands in 10 AMESA countries by 2023. With the rPET bottles introduced in South Africa and Bangladesh earlier this year, PepsiCo is the first large-scale food and beverage company to launch locally produced 100 per cent rPET bottles in GCC’s Qatar and Kuwait by end of 2022.
PepsiCo aims to continue its progress towards expanding plastic collection programmes to 14 AMESA markets by developing recycling infrastructure through advocacy and partnerships by 2023. As per 2021 estimates, PepsiCo supported the collection and recycling of 107,000 tonnes of plastic bottles and 19,000 tonnes of multi-layered Plastic (MLP) films across seven AMESA countries. This was delivered through mass collection partnerships, deploying reverse vending machines, launching incentive programmes, and partnering with recyclers for ensuring the beneficial use of collected plastics.
Earlier this year, in the capacity of Expo 2020 Dubai’s Official Beverage and Snack Partner, PepsiCo helped to reduce the use of single-use plastic, diverted at least 85 per cent of on-site waste and avoided more than 500,000 plastic bottles through Aquafina water stations as well as by replacing plastic bottles with Aquafina aluminium cans and glass bottles.
In Egypt, as policymakers lay out an ambitious COP27 roadmap, PepsiCo launched the biggest PET collection programme in Egypt ‘Recycle for Tomorrow’ in 2021 and is now introducing locally manufactured recycled plastic bottles as part of its efforts to build a circular economy by 2030.
SUPPORTING SUSTAINABLE BUSINESSES
PepsiCo believes in leveraging the power of hackathons for nurturing young entrepreneurs to accelerate sustainable technologies through grants, mentorship and opportunities. With the MENA region’s startup ecosystem on an upward trajectory, PepsiCo welcomes the support from local governments to launch exciting editions of hackathons that push the envelope on circularity and positive change for the people and the planet. Earlier this year, PepsiCo Egypt partnered with the Ministry of Social Solidarity and Rise-Up to hold a one-of-a-kind hackathon
for aspiring startups to work towards Egypt’s 2030 vision for zero hunger, gender equality and social development.
In 2021, PepsiCo partnered with the UAE Ministry of Climate Change and Environment and the Foodtech Valley, to launch the MENA edition of its global Greenhouse Accelerator programme – a six-month initiative seeking to enhance innovation and sustainability through collaboration with purpose-driven brands from the MENA startup ecosystem that shared PepsiCo’s vision for a more sustainable food system.
Willemsen says: “The theme for the ‘2022 PepsiCo Greenhouse Accelerator: MENA Sustainability Edition’ was sustainable packaging and circular economy solutions. From a pool of more than 70 applications, we selected to support 10 companies from the MENA region. We recently announced UAE-based startup Nadeera as the winner of the programme. It will receive a grant of $100,000 and other benefits to scale its sustainable packaging solution and grow its business.
Climate action failure is the most critical threat to the world and our planet in the next five to ten years
LEADING BY EXAMPLE
EUGENE WILLEMSEN SHARES THE SIGNIFICANCE OF THE UPCOMING 27TH CONFERENCE OF THE PARTIES OF THE UNFCCC (COP27), ESPECIALLY FOR AFRICA AND THE MIDDLE EAST
The World Economic Forum’s Global Risks Report 2022 ranks climate action failure as the most critical threat to the world and our planet in the next five to ten years. Each 1°C increase caused by global warming is projected to result in a 20 per cent reduction in renewable water resources, affecting an additional 7 per cent of the population – hindering economic growth, spurring migration, and even sparking conflict. Even though African countries contribute only 4 per cent of global emissions, they are suffering the most severe impacts of climate change. Ultimately, it becomes imperative to prioritise Africa’s case in the global climate change agenda as the continent is most vulnerable to the climate change crisis further driven by the pandemic.
Businesses such as ours play a vital role in advancing the overall environmental agenda. We recognise that to be resilient and successful over the long term we need to invest in building a sustainable future now. Multi-stakeholder partnerships are key, and to take these to scale we need a range of policy enablers that will help decarbonise the private sector to achieve a 1.5°C world. These include incentives for climate-smart agriculture, like soil sequestration credits, tax credits, loans and guarantees.
The 2021 UN Climate Change Conference (COP26) reaffirmed the need to take urgent action to combat climate change and now with the MENA region hosting the next two UN Climate Change Conferences – Egypt for COP27 and the UAE for COP28, we see an opportunity to increase support for regenerative agriculture, which can address both adaptation and mitigation, leading to the improvement of livelihoods and a more resilient food supply and this is a key focus area for PepsiCo both now and in the coming years. Additionally, as the case for green transition becomes stronger, there is an urgent need to prioritise the energy crisis by unlocking purchase power agreements (PPAs) and forging collaborations for increased investments in green innovation.
The meaningful change we need to take to address and mitigate the effects of climate change will be led by innovations that provide solutions. By bringing together global thought leaders, we will be able to hone this innovation into practice.
As we prepare to head to Egypt’s Sharm El-Sheikh (to attend COP27), I encourage us all to consider how we can put these topics squarely on the agenda. We are eager to lead by example and provide support for an accelerated progress towards creating new solutions to overcome climate change.
ON THE ROAD TO A GREEN ECONOMY
GLOBAL AND REGIONAL MINISTERS, OFFICIALS AND EXPERTS GATHERED AT THE WORLD GREEN ECONOMY SUMMIT IN SEPTEMBER TO DISCUSS SUSTAINABILITY, CLIMATE CHANGE, GREEN ECONOMY, AND RENEWABLE AND CLEAN ENERGY
WORDS: ZUBINA AHMED
The impact of climate change is being felt across all sectors of society.
The Sixth Assessment Report of the Intergovernmental Panel on Climate Change 2022 indicates that climate change will impact water quality and availability. Globally, 800 million to three billion people are projected to experience chronic water scarcity due to droughts at 2°C warming.
In the current situation, we all need a positive change in order to prepare the next generation of climate action leaders. A transition to a global green economy is based on collective will, partnerships and swift action. Moreover, advancing the green economy requires international cooperation, guaranteeing a new approach, a stable partnership and common goals that can enhance this cooperation. With an aim to make green economy a reality, the UAE recently held the 8th World Green Economy summit on September 28. The two-day event was organised by Dubai Electricity and Water Authority (DEWA), the World Green Economy Organization (WGEO), and the Dubai Supreme Council of Energy at the Dubai World Trade Centre.
The theme of the summit ‘Climate Action Leadership through Collaboration: The Roadmap to Net Zero,’ reflected the need for international cooperation to combat climate challenges, expand dialogue on sustainability, promote efforts for renewable energy, develop solutions to reach net zero and aim for a sustainable future.
Regional and global ministers, officials and experts gathered at the summit to explore opportunities for collaboration and exchange.
Highlights of the event The summit focused on the four key pillars of the green economy: energy, finance, food security, and youth. The ‘Energy’ pillar looked into solutions to enhance energy efficiency and decarbonise the energy systems. The ‘Finance’ pillar focused on attracting and encouraging green investments. The ‘Food Security’ pillar examined approaches and methodologies to build resilience and sustainability into value chains, while the ‘Youth’ pillar highlighted the need to support and empower the youth who are the driving force of sustainable development. During his keynote speech, Saeed Mohammed Al Tayer, vice chairman of the Dubai Supreme Council of Energy, MD and CEO of DEWA and chairman of WGEO, emphasised how the UAE has been leading global efforts in tackling climate change and pioneered efforts to address global challenges and promote quality investments in the green economy.
He stated, “Selecting the UAE to host the 28th Conference of the Parties (COP 28) to the UN Framework Convention on Climate Change (UNFCCC) underlines the world’s recognition of the UAE’s efforts and its effective role in combating climate change. Last year, the UAE announced the UAE Net Zero by 2050 Strategic Initiative, with investments of more than Dhs600bn in clean and renewable energy until 2050. This makes it the first country in the Middle East and North Africa to launch such an initiative.”
Al Tayer explained that Dubai has succeeded in reducing carbon emissions by 21 per cent in 2021; exceeding the target set in the Dubai Carbon Abatement Strategy 2021, which aimed to reduce carbon emissions by 16 per cent by 2021.
He added: “Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Dubai Net Zero Carbon Emissions Strategy 2050 to drive sustainability, innovation, and transformation towards a sustainable green economy by 2050. The UAE hosts specialised international institutions in the green economy, such as the International Renewable Energy Agency (IRENA) in
Abu Dhabi and the World Green Economy Organization in Dubai. The country has also led projects such as Masdar City in Abu Dhabi and the Mohammed bin Rashid Al Maktoum Solar Park in Dubai that aim for a net-zero future.”
Panel discussions The first day of the summit featured a panel session – ‘Implementing the Paris Agreement: Building a MENA climate action legacy’ where the panelists discussed topics related to climate action in the Middle East and North Africa, and the significance of hosting COP27 in Egypt later this year and COP28 in the UAE next year.
Another great panel discussion called ‘Hydrogen: Fuel of the Future’ showcased regional expertise and research and development projects. In another panel, ‘Investment in climate adaption, investment in growth and resilience’, speakers discussed the need for balanced economic growth in the short term, while progressing efforts in achieving climate goals to attain sustainable long-term growth. Another session discussed netzero implementation case studies, which highlighted the crucial role of the private sector in accelerating the energy transition agenda.
The final panel discussion: ‘Understanding the role of green bonds in accelerating sustainability’ highlighted the significance of green bonds in tackling the adverse effects of climate change.
Global Alliance on Green Economy launched Al Tayer also launched the Global Alliance on Green Economy at the summit, with the aim to build a coalition of countries, prioritising a green economy in the context of climate action and sustainable For us in the UAE, pioneering the adoption of green economy principles and practices within sustainable development, resilience to climate change, and poverty eradication are paramount”
development, to enhance the capacity of developing countries, provide support for their green economy transition projects and exchange knowledge on implementation.
“For us in the UAE, pioneering the adoption of green economy principles and practices within sustainable development, resilience to climate change, and poverty eradication are paramount. Linking the Paris Agreement goals and its corresponding articles, as well as the 2030 Agenda for Sustainable Development with climate planning and climate finance, are key synergies in this transition. We truly believe this harmonisation to be essential in the lead-up to COP27 and COP28 in Egypt and the UAE, respectively,” said Al Tayer.
“This Global Alliance is not the outcome but the first milestone toward important work ahead. We will now be engaging with countries to identify their needs, priorities, and challenges in the context of the green economy, during the next three months. This multi-stakeholder exercise and inclusive consultation with countries will lead to the launch of a suite of flagship projects by WGEO to support the green economy agenda in the countries joining the Alliance. The work under the Alliance will address pressing issues such as food security and carbon markets and how cooperation can be increased at the South-South and North-South levels,” added Al Tayer.
Youth and climate change The World Green Economy Summit also hosted the Regional Conference of Youth (RCOY) MENA. More than 150 young people from across the region took part in the conference. The forum discussed a range of topics related to the skill development of young people in global climate policies, empowering them, and making their voices heard in climate action policies. It also provided a platform for capacity building and policy training, to prepare young people for their participation in the UN Climate Change Conference of Youth (COY) and Conference of Parties (COP). The regional conference is designed to develop a network among MENA youth to prepare and train the Arab and North African youth to host and lead the COP27/COY, which will be held in Sharm El-Sheikh, Egypt, this month.
The World Green Economy Organization also facilitated the collaboration between policymakers, young people and other stakeholders to accelerate towards a sustainable global green economy.
Additionally, the Dubai Supreme Council of Energy, DEWA’s Youth Council, in cooperation with the Federal Youth Authority, organised a Youth Circle titled ‘Youth Action Towards Achieving Net Zero’. The session discussed several topics related to the role of the youth in climate action; the future skill-sets the youth need to pursue to be able to tackle the climate change issues; and the role of the government and private sectors and NGOs in supporting youth action towards achieving the net-zero targets.
The 8th Dubai Declaration The summit concluded with Al Tayer, announcing the 8th Dubai Declaration, which emphasised the importance of comprehensive partnerships and the need to mobilise resources to support low-emission development initiatives and the transition to a green economy. It called for promoting the efforts and contribution of the public and private sectors in exploring ways to enhance energy efficiency and reduce emissions in the energy systems, mobilise investments in support of green growth and sustainability, in addition to empowering the youth to make positive and effective change.
NOT QUITE STACKING UP
GLOBAL CORPORATE RENEWABLE POWER PURCHASE AGREEMENT VOLUME BY REGION
Americas Europe • Middle East • Africa Asia Pacific 40 gigawatts
30
20
10
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1H 2022 0
I
n 2012, companies procured power from 300 megawatts of wind and solar; last year, they bought more than 30 gigawatts’ worth, a 100-fold increase. There are now more than 125 gigawatts of clean power under contract to large companies around the world.
But look closely at data from the fi rst half of 2022, and the one-way bet appears to be o . Corporate procurement of clean energy stopped short of 15 gigawatts, less than half of last year’s total. That means at the current pace 2022 could be the fi rst down year in more than a decade for new corporate procurement of clean energy.
The relative decline is not evenly distributed. In the Americas, contracts are running only a few hundred megawatts behind 2021’s annualised rate. In the Asia Pacifi c region, though, contracts are running more than 20 per cent ahead of pace. The bulk of the decline comes from paltry contract volumes in Europe, the Middle East and Africa. (Note that almost all contracts in this big region are in Europe proper.)
A number of factors are impairing the corporate clean energy market in Europe in particular. There’s the geopolitical uncertainty of the Russia-Ukraine crisis, as well as its impact on power prices (which have spiked to astronomical levels in France and Germany). Spiking prices and economy-wide infl ation have made it very di cult to negotiate long-term power purchase terms. There are a some bright spots: Spain’s and Denmark’s corporate clean energy markets are both on record pace. But the European market as a whole is constrained.
But the market in the Americas is not all that top-line fi gures would suggest. Amazon.com played an enormous role in overall corporate clean power purchasing, signing 25 contracts for 5 gigawatts of capacity on its own. Without that, volumes in the region would be well below last year’s trend as well.
Between 2020 and 2021, Amazon’s electricity consumption rose by nearly 29 per cent. The company has purchased 19 gigawatts’ worth of clean power to date. That’s double the next largest corporate purchaser (Microso t with 9 gigawatts). The clean power that Amazon now commands would make it the world’s 10th largest wind and solar portfolio.
The comparison isn’t exactly apples to apples because utilities own their assets, while Amazon just signs contracts for power. But it’s instructive. While Chinese companies dominate global clean power portfolios, Amazon uses more clean power than Warren Buffett’s Berkshire Hathaway owns, and more than French power giant Electricite de France (EDF). Amazon’s clean power is only slightly smaller than Europe’s two other major utility owners of renewable assets, Iberdrola of Spain and Enel of Italy. Amazon’s appetite is a sign of what’s ahead. Corporate demand for clean energy is growing, regardless of near-term market disruptions. Companies that have signed the RE100 pledge for 100 per cent clean energy will require another 275 terawatt-hours worth of clean power in 2030, as much as Spain generates today.CHINA’S GIANTS, EUROPE’S LEADERS AND AMAZON
Renewable power generation portfolios by corporate owner, gigawatts
State Power Investment Corp (China) China Energy Investment Corp Next Era Energy
China General Nuclear Power Corp China Huaneng Group
China Datang Group
Iberdrola
Enel
China Huadian Corp
Amazon
China Three Gorges Corp
EDF
Berkshire Hathaway China Resources National Corp
Huaneng Power International (China) 29.8
28.7
25.4
24.0
22.5
21.6
19.0
19.0
18.3
14.6
14.5
14.2
13.0 55.1
All-time high
California set an all-time power demand record in September thanks to record heat in many parts of the state. The last record dates to 2006, and since then the state has added multiple gigawatts of roo top solar. Something else wholly new since the last demand record: batteries.
The following chart shows fi ve years’ worth of Labor Day grid-scale battery energy. It’s not hard to see the growth, and also not hard to imagine how much more strained California’s electricity grid would be without distributed solar generation and very large batteries discharging when the system needs them most.
Looking beyond luxury
Founder and CEO of Driven Properties, Abdullah Alajaji and his team tell us about Dubai’s booming luxury property market and the growing focus on sustainability in the real estate sector
In a rapidly urbanising world, the real estate sector often lies at the centre of growth and activity. Dubai’s real estate sector is also reflecting this trend. According to a report by Bloomberg, over the last year, real estate prices have risen by 89 per cent. In fact, as per the Dubai Land Department, more than 43,000 property transactions, exceeding $31.3bn were recorded in the first half of 2022 alone. Dubai also just witnessed the sale of the most expensive mansion on Palm Jumeirah for $82m alongside a host of other high-profile sales.
Lina Allaoa, associate partner at Driven Properties, says: “This year has definitely been a year of records, some of them set by us and some by others in the industry. The luxury real estate niche in Dubai is outstanding, and it seems the year ahead of us will continue to boom. We are excited to have a few extraordinary projects that will be launched in the months to come.”
Driven Properties, which offers turnkey solutions to its client’s real estate needs, be it property management, short-term rentals, interior design and mortgage consultancy, has also reaped the benefits of the uptick in the market.
Abdullah Alajaji, founder and CEO of the Dubai-based real estate company, says he saw a lack of structure and dearth of institutional know-how in the market when he started Driven Properties in 2012. He adds, “My background as an investment banker gave me an insight into how investors make decisions, and what information they require to take calculated risks. This approach set the foundation for how we operate as an organisation. Today, we are the largest real estate agency in Dubai, and an exclusive member of Forbes Global Properties; a consortium of 100 best brokerages in the world.”
Specialising in luxury real estate, Driven Properties has a well-rounded portfolio of properties across Dubai. Elaborating more about their company and its portfolio Kianoush Darban, associate partner, Driven Properties explains, “Last year, we sold the most expensive penthouse in Dubai at the time for a whopping Dhs85m. Jumeirah Bay Island has and is one of our strongest ares for residential sales. We enabled the sale of the most expensive
Kianoush Darban, Abdullah Alajaji and Lina Allaoa
residential plot, followed by the highest square foot price ever recorded in the UAE (Dhs12,624). Recently, we sold the most expensive townhouse ever sold in Dubai, which is also in the same area.”
Moving towards sustainability
Sustainability is a key trend these days and there is a clear demand for it among customers. Alajaji confi rms, “Our recent project on Jumeirah Bay Island, Sea Mirror was fully sold out before the o cial launch and is a perfect example of combining modern architecture with nature in a sustainable way. The market lacked projects such as this, and as a means of addressing the shortfall, we launched Lamar Development, a development company that focuses on ultra-high-end projects that are designed in a sustainable way.”
With UAE moving towards a greener and sustainable future, it has become a responsibility for all property developers to put sustainable solutions at the heart of the construction process. The Dubai 2040 Urban Master Plan maps out a comprehensive plan for sustainable urban development. With the UAE’s 2050 net-zero commitment, the nation is well poised to be a regional leader in sustainable communities over the next 50 years. “For a country that has set so many records before, I have no doubt this will also be executed successfully. Many key sectors other than real estate will also be impacted, but I am confi dent we will all successfully implement initiatives
designed by the government and achieve the goal by 2050,” says Alajaji.
What customers want
The luxury property market in Dubai has always been about location. But what more are customers looking for in the city? Lina Allaoa explains, “Comfort, design, space and premium amenities are important factors as well. We have had a lot of success with Bulgari Resort and Residences, and Jumeirah Bay Island as a whole, which exemplify these factors.”
Kianoush Darban adds, “Certain projects on the Palm have been very successful, but if we are talking about the most popular area, nothing compares with Jumeirah Bay Island. Clients adore it mainly because of the privacy and exclusivity of the location, as well as direct beach access and unparalleled amenities.”
Being a cultural melting pot and cosmopolitan capital, it is easy to see why Dubai is gaining popularity to live, work and invest in. Buoyed by years of infrastructure and population growth, the market in Dubai has outperformed most global property markets, beating Paris, London, New York and Hong Kong. “When comparing the quality of life in Dubai with any other leading global city, it’s astonishingly a ordable. Dubai has consistently seen some of the fastest population growth outside of China in the last decade because of its high safety index, its status as a tax haven, and its central geographic location,” concludes Alajaji.
FOUR BILLION TWEETS
WERE ANALYSED BETWEEN 2014 AND 2020 FROM USERS BASED IN THE US TO TEST THIS THEORY
A HOT DEBATE
IS CLIMATE CHANGE MAKING PEOPLE ANGRIER ONLINE? BLOOMBERG’S LAURA MILLAN LOMBRANA INVESTIGATES
Climate change is making us angrier online. A lot angrier.
Hateful comments spike on social media when temperatures rise above 30 degrees Celsius (86 Fahrenheit), researchers at the Potsdam Institute for Climate Impact Research have found.
“It’s an indicator of how well people can adapt to high temperatures,” says Annika Stechemesser, lead author of the study published in The Lancet Planetary Health in September. “If temperatures go too hot or too cold, we found that there’s an increase in online hate speech, no matter the socioeconomic differences, religion or political beliefs.”
Mental impact
Global warming of about 1.1°C on average since pre-industrial times has unleashed all sorts of extreme weather events across the world. This summer, drought and a string of heat waves hit Europe, China and the US. For humans, heat is associated with psychiatric hospitalisations, increased rates of suicide and more domestic violence, according to research. And aggressive behaviour online has been linked to violence offline too. Incensed posts have led to more violence toward minorities, including mass shootings, lynchings and ethnic cleansing, according to the Council on Foreign Relations, a New York-based think tank. Stechemesser and other researchers analysed a sample of four billion tweets between 2014 and 2020 from users based in the US. They used artificial intelligence to identify about 75 million hate messages in English, using the United Nations’ definition of online hate, which includes racial discrimination, misogyny and homophobia. They then analysed how the number of tweets changed when local temperatures increased or decreased.
Direct ratio
The researchers found that online hate speech increased as daily maximum temperatures rose above 21°C (70F) – a “feel good” point. Hate messages went up as much as 22 per cent on hot days, compared with the average online hate during times of mild weather. Across all climate zones and socioeconomic groups in the US, online tensions intensified even more significantly when temperatures exceeded 30⁰C.
Researchers observed that online hate speech increased by as much as 24 per cent – from the feel good point – when temperatures reached 42⁰C to 45⁰C in US regions with hot and dry climates such as parts of Texas, Arizona, New Mexico and California. Last year, a study by the same researchers focusing on Europe reached similar conclusions.
“When discussing climate change, it’s a point to remember that we feel the effects everywhere, not just in places with big disasters,” Stechemesser says. “There are places where the social consequences of heat have been not discussed very thoroughly, especially around how we can live together as a society and deal with our wellbeing in the future.”
Researchers analysed the tweets as a whole and did not look into specific incidents. That means there’s no way to know if the weather made online tensions worse following the incident involving George Floyd in May 2020, for instance, or in the lead up to the attack on the US Capitol in January 2021. Still, some conclusions can be reached ahead of the US mid-terms on November 8.
The direct relation between heat and online hate has also been documented in China, where researchers analysed over 400 million tweets from a sample of 43 million users posting on the country’s largest microblog platform – Sina Weibo. They concluded that days with temperatures above 35°C, rain, higher wind speed, overcast skies and air pollution all make people grumpier online.
“Of course people can to an extent decide consciously whether they want to be nice or not, but we still find you’ll have more hateful behaviour if you find yourself in a certain temperature range,” Stechemesser says. “The first thing to do is limit global warming, that’s the most obvious approach to solving this.”
Lifestyle
22
Porsche goes all electric
Porsche is all about performance, and the Taycan GTS version doesn’t disappoint. A delight to cruise around in, this electric vehicle has the heart and spirit of a mighty sports car while being kinder to the environment p.42
“Research has been showing for years that consumers – especially the empowered younger generation – are looking for brands that o er more than just a product; they are rewarding brands that stand for something with their spending power. We have seen this fi rsthand with the loyal “KIND” community we are building”
Lynda Chapman and Pia Dwyer, co-founders of e KIND Collective Panerai Submersible eLAB-ID
The Submersible eLAB-ID is the first watch to use 95 per cent recycled SuperLuminova on its dial and hands and 100 per cent recycled silicon for its movement escapement. Both are obtained through dedicated, small-scale recycling processes that reuse raw material waste
An electric performer
WE TAKE THE PORSCHE TAYCAN, THE BRAND’S FIRST ALL- ELECTRIC CAR, FOR A TEST DRIVE
BY SHIVAUM PUNJABI
THE TAYCAN GTS CAN ACCELERATE FROM 0-100KPH IN 3.7SECS
In 2015, Porsche showcased its Mission E Concept electric sports car to the world. Fast forward to current times, we have the Porsche Taycan EV – the luxury automaker’s fi rst EV, featuring a design that is heavily infl uenced by the concept car. The Porsche Taycan has fi rmly established itself in the electric vehicle (EV) category, as the “sporty” EV to buy. It’s a car designed with sustainability in mind.
DESIGN
Being a sport derivative, the Taycan GTS retains the basic silhouette of the lowslung Taycan. The slim headlights are flanked by teardrop-like vertical slits, which channel air around the front. The roof slopes in a gentle arch – like the Porsche 911 – towards the flat deck-style rear, which gets encompassed by a widthspanning light bar. Being an EV, it has no exhausts, but a slated bumper instead. The model reviewed was painted carmine red, a unique shade available only for the
IF THE INDICATOR DROPS BELOW 20%, A 30-MINUTE FASTCHARGING STOP AT THE PORSCHE SHOWROOM IS ENOUGH TO JUICE THE BATTERIES UP TO 75 %
GTS trim level. Another noteworthy feature: the 21-inch ‘Aeroblade Exclusive Design’ wheels – these are aerodynamically optimised forged alloy machined, and the aeroblades in carbon ensure a lower overall weight.
INTERIORS
How do you describe the Taycan GTS interiors? It would have to be “spaceshiplike”. Screens take precedence inside the cabin, with the driver receiving the best unit of the lot – a 16.8-inch curved digital dashboard with crisp graphics. The centre console gets two additional sets of screens – a multimedia unit on top housing all car and infotainment confi gurations with Apple CarPlay equipped as standard. The lower screen can alter the ventilated seats’ settings and climate control.
Porsche “tricks” you into believing that the centre console has no buttons, but there are a few buttons that look like touch points – they are actually touch buttons with haptic feedback, a form of interactive communication between humans and computers that includes sensory feedback to enhance the user experience.
The cabin has a clean, elegant and ergonomic design so getting used to it is quick and easy. Customers can customise the upholstery with various options, from leather to sustainable materials. The model reviewed came with a fi xed panoramic sunroof, lending an airy feeling to the cabin. It also had a passenger side dashboard display, which extended the digital dominance inside the cabin, an optional extra.
DRIVING DYNAMICS
The GTS sits right between the base rearwheel-drive Taycan and the top-spec Turbo S trim levels. And that means it produces just over 502 HP and 590 HP with over-boost mode, which is activated at launch control. This allows the Taycan GTS to accelerate from 0-100kph in 3.7 seconds, rendering it half a second slower than the Turbo and about a second slower than the all-powerful 700hp Turbo S.
The GTS comes with an all-wheel-drive system, with two motors, one in the front and one at the back.
In the real world, the GTS still feels quite fast. Floor the throttle, and the car shoves you into your seat and keeps you there. Even though this is an EV, the experience somehow feels analogue. You are highly in tune with what the car is doing. You sit down and low and still have excellent visibility. The chassis setup is sublime. You can sense the bends and take them with confi dence and precision. The car provides you
with ample grip and feedback. The Taycan is agile and surefooted, making switching directions and tackling the bends a matter of flicking the steering wheel.
The car comes equipped with air suspension, adaptive cruise control and lane keep assist, making it comfortable for long-distance cruising and highway driving. On the way to your destination, if you choose to make a detour at your local race track, the Taycan will not disappoint over there either. No other vehicle that weighs this much can drive and handle the way the Taycan can. It is a proper sports car in “EV” clothing.
EV CHARGING
The Taycan GTS did not show drastic drops upon pushing it under heavy acceleration, even though I kept an eye on the range indicator at all times. At just over 90 per cent charge, the car displayed 380km of range. If the indicator goes below 20 per cent, a 30-minute fast-charging stop at the Porsche showroom juiced the batteries up to over 75 per cent.
Note that the charging efficiency depends on multiple conditions such as weather, state of the charger, amount of current available and the charger and type of charger. The real-life range of the Taycan GTS or any other EV depends on how it is driven. The Taycan gave us a range of 350km for city and highway driving conditions.
VERDICT
The Taycan is impressive. It truly encompasses the Porsche spirit into a modern platform. For daily city driving, it provides you with ample range. If you decide to go on a long-distance ride, ensure your charging stations are mapped; do not leave anything to chance.
The Porsche Taycan GTS and other versions are now available to order. The starting price of the GTS is Dhs520,000.
Switzerland: Focused on sustainable tourism
WE LOOK AT HOW THE COUNTRY’S SWISSTAINABLE STRATEGY IS SHAPING ITS TOURISM SECTOR
AWorld Tourism and Travel Council report, published in September 2020, forecasted that sustainability would be among the key trends that would play a decisive role in destination choices in the future. Two years later and post Covid-19, this trend has only grown in significance, as the world continues to align itself with a net zero future and a renewed vigour for travel.
With sustainability driving the country’s agenda for decades, Switzerland has been a staunch supporter of climate action. The country is on track to meet the United Nations 2030 Sustainable Development Goals and has announced it will reduce its net carbon emissions to zero by 2050.
A WAY OF LIFE
Sustainability has been shaping the country for decades, be it through the predominant use of hydroelectric power — more than 70 per cent of the country’s power comes from renewable energy sources. The topography, numerous rivers and lakes, and glaciers have also supported this strategy.
The Swiss also have high levels of ecoconsciousness, most likely because of the country’s beautiful mountains, verdant landscapes, and natural beauty.
In fact, to maintain pollution and carbon emissions, cities such as Zermatt have a car-free policy as do mountain resorts such as Melchsee-Frutt, Blatten-Belalp, Mürren, Wengen, Saas-Fee, Bettermalp, Rigi, Stoos, Braunwald and Riederalp.
Switzerland is also one of the world’s leading countries when it comes to recycling and waste management, with almost 90 per cent of PET bottles being put to new use.
These factors underpin Switzerland’s sustainability strategy: Swisstainable, which has had a significant impact on its approach to tourism.
BEING SWISSTAINABLE
Swisstainable is all about encouraging visitors to get up close to nature and experience the local culture and surroundings in an authentic way while delving deeper into the culture and nature of Switzerland as they enjoy local products. To facilitate, encourage and promote this concept, the sustainability programme is open to all Swiss tourism operators — whether the business already has sustainability certification or is just setting out on this path. Service providers can reach different levels — there are three — of the programme depending on their involvement and initiatives, waste management, housekeeping measures, and the use of local products and resources, within the hotel or establishment.
More than 1,200 tourism service providers have already joined the Swisstainable programme, with many more expected to enroll within the next months.
The Swiss hospitality sector is also contributing to encouraging sustainability, with hotels and resorts actively joining the Swisstainable programme.
These steps are key to aligning the travel and tourism, and hospitality industries with Switzerland’s overall goal to adopt sustainability across all sectors.
Sustainable sparklers
FIRST DEVELOPED IN THE 1950S, LAB-GROWN DIAMONDS ARE NOW WIDELY USED IN JEWELLERY PIECES. ONE SUCH BRAND CHAMPIONING THE PROCESS IS DUBAI-BASED FYNE JEWELLERY. FOUNDER AYA AHMAD TELLS US HOW LAB-GROWN DIAMONDS ARE CREATED AND WHY THEY ARE THE FUTURE OF THE GEMSTONE
Talk us through your career.
My trajectory into the jewellery industry did not start in a design or fashion school: Instead, I began my career in London in investment banking. A ter completing an MSc in real estate economics and fi nance, and interning at BNP Paribas and Nomura International, I felt the urge to explore business beyond corporate life.
I’ve always had a passion for entrepreneurship, technology and sports so I moved on to the startup scene in 2014. I co-founded a sports app for young professionals who
found it time-consuming to book sports facilities and find nearby players to play with. After raising £100,000 (Dhs497,000) through an angel investor, we were unable to scale the app due to the facilities being reluctant to adopt new technologies. That experience taught me a great deal about starting and managing a business and planted the seed for the entrepreneur I am today.
In 2016, I moved back to Antwerp, Belgium to join the family business specialising in wholesale diamond trading and manufacturing. I trained as a diamantaire sourcing and manufacturing rough diamonds, visiting international diamond tenders in South Africa and Botswana.
How did you come to launch Fyne Jewellery?
While working as a diamantaire, I noticed one thing; for an industry that is made for and advertised largely to women, my gender was largely underrepresented. That was the first push I felt to do something out of the ordinary. Meanwhile, I started creating engagement rings for my friends, and their referrals on request, as I had access to wholesale diamond prices. I found that there was a huge demand for accessible yet high-quality jewellery. I also began exploring the world of design by re-purposing my old gold jewellery into something modern and minimal. That’s when I realised that there was an opportunity to create something timeless and innovative for my generation: a generation that is conscious about making sustainable and ethical choices but also one that is more price sensitive. Being of Lebanese origin, coupled with the forward-thinking mindset of the UAE, I decided to launch Fyne in Dubai in November of 2019.
You’re using only lab-grown diamonds. Tell us about it.
When creating Fyne, I wanted every part of the process to be empowering – from the designs to the materials to our overall brand identity and vision. After working in the industry first-hand, I felt the natural decision was to shift towards lab-grown diamonds. I wanted our choice to be an essential part of our vow to the earth – and for our jewellery to inspire women to make improved conscious choices in their everyday lives.
How do you create lab-grown diamonds?
Laboratory grown diamonds were invented by General Electric in the 1950s and have been used to drive huge industrial advancements in telecommunications, optics, and health care. More recently, the technology has improved to enable lab diamonds to be created for jewellery. Essentially, diamonds are made up of one element: carbon, which makes carbon a crucial element in the growth process. There are two main ways to grow a diamond: HPHT (high-temperature high pressure) is a laboratory process that mimics the high temperature and high-pressure environment of a diamond formation beneath the Earth’s surface. (Typically,
Aya Ahmad
the temperature needed is between 1,300 to 1,600C and the pressure exerted is 5-6 GPa.) CVD (chemical vapour deposition) is a newer technique that uses lower pressure and moderate temperature (700 to 1,300C). A rich carbon gas is placed into a vacuum chamber, then heated with a microwave beam causing the carbon atoms to break apart and crystallise on top of a diamond seed, slowly forming a rough diamond crystal. It can take between three and 12 weeks to grow a rough diamond crystal.
Mined diamonds
Lab diamonds
Thereafter, it goes through the usual cutting process to become a polished diamond used in jewellery.
Lab-grown diamonds are said to be better for the planet – how is this?
Earth-mined diamonds are harvested in a long and obscure process that requires them to pass through many hands. This puts more of a burden on the planet (producing more carbon emissions) and makes diamonds expensive. Because the supply chain is shorter, lab-grown diamonds are a more affordable and planet-friendly alternative that still guarantees the same (if not, higher) quality. Moreover, mining diamonds requires a huge amount of fossil fuel, water and land. In addition, the emissions produced from the traditional mining process cause both air pollution and groundwater pollution.
With lab diamonds, not only is the water used almost negligible, but it does not contaminate groundwater, crops and soil. The land used to set up these growing facilities is a tiny fraction of the size of a mine. And because they can be set up almost anywhere, they will not pose a threat to the natural ecosystems that are at risk during diamond mining. It is also important to note the source of energy used to grow lab diamonds: There are some suppliers we work with that are certified carbon neutral – going one step further in their sustainability commitment by using renewable energy sources in their manufacturing facilities.
Overall, growing diamonds as opposed to mining them results in lower carbon emissions, no groundwater pollution, little to no mineral and land waste, and no risk to biodiversity.
How do they differ from mined diamonds?
Lab-grown diamonds are identical to diamonds sourced from the earth as they exhibit the same chemical, aesthetic and optical properties, which means their hardness, refractive index, dispersion, specific gravity (i.e. everything that makes a diamond, a diamond) is the same. In fact, they’re so hard to tell apart that gem labs have invested a lot into R&D to find methods to differentiate them.
The main difference we see on the market is the price of lab diamonds. Just as with any commodity, lab diamonds depend on demand and supply dynamics as well as the cost of production.
Typically, they are priced between 30 to 40 per cent below mined diamonds, which means price-conscious customers can buy larger lab diamonds with better characteristics for a more competitive price.
When it comes to the Middle Eastern market – what is the take on lab-grown diamonds, in your opinion?
I think over the last two years the landscape has drastically changed. Our main focus in 2019 was to inform the region of the benefits of lab-grown diamonds and make it clear that they are indeed, a diamond. Initially, there was some confusion that lab-grown diamonds are cubic zirconia or moissanite. However, customers are better informed now than they used to be. There’s a greater understanding of the ethical and environmental impacts of what they are buying. This is also translating into an increased demand for bespoke lab grown engagement rings… I’m definitely excited by what’s to come.
TYPICALLY, LAB DIAMONDS ARE PRICED BETWEEN 30 TO 40 PER CENT BELOW MINED DIAMONDS
In business, what is a philosophy you live by?
Authenticity is key. Business can be incredibly competitive so it may be tempting to follow the herd or cut corners to scale; however, I believe it’s very important to remain authentic and true to yourself, your values and your customers.
What have been the hurdles you’ve had to overcome throughout your career?
Not many people are aware that I operate my business from abroad. I launched Fyne from Luanda, Angola after several trips to Dubai and Antwerp to meet with jewellery manufacturers and lab diamond suppliers.
Working remotely was a challenge – both physically and mentally. I often questioned how I would be able to manage a business from abroad, design new collections or scale without being always physically present. However, not long after I launched my brand, the pandemic hit, and communities came together on social media in support of small businesses. Remote working and meetings on Zoom became the norm, while online shopping was experiencing exponential growth. These changes along with a reliable team on the ground have been a big factor to overcoming this hurdle.
What are some of the key lessons you have learned throughout your career?
Learn to adapt, quickly. A business needs to be agile and flexible to keep up with the ever-changing digital, fashion and tech landscape that we’re experiencing today. Discipline is more important than motivation because discipline is consistent while motivation will come and go. Finally, always be open to feedback – especially if it’s not what you want to hear.
Lynda Chapman and Pia Dwyer
women in this region are fully empowered
Two of a KIND
LYNDA CHAPMAN AND PIA DWYER, CO-FOUNDERS OF AUSTRALIAN BEAUTY BRAND THE KIND COLLECTIVE, SHARE WHAT INSPIRED THEM TO LAUNCH THEIR RANGE OF VEGAN, CRUELTY-FREE AND SUSTAINABLY DERIVED COSMETICS
BY NEESHA SALIAN
Tell us about your brand and what inspired you to start it.
A ter more than 30 years in the industry, we saw an opportunity to o er beauty lovers “more” in their makeup by creating a brand that refl ects our personal mission to make the world a kinder place. We decided that we wanted to – as a female- owned and run company – create a brand that wasn’t “just pretty”, but one that really cared, with products that are kinder to the environment, 100 per cent vegan and cruelty-free, and perfect for the skin.
While it can be fun, a 10-step beauty regime isn’t always practical for most of us. We wanted to create multi-purpose women in this region are fully empowered and are pioneers and leaders in various fi elds, and we wanted to be part of this.
As with any new market expansion, we always make sure we keep our local target consumer at the heart of what we do. We work with a local team of experts to make sure we are o ering something new and exciting while staying true to our values, positioning, and product o ering. We are available in the UAE and Saudi Arabia exclusively with Faces.
cosmetics that are cutting-edge, infused with powerhouse native skincare ingredients sourced and made in Australia.
Tell us about your business model and operations.
We saw a big opportunity in the UAE market for a brand like The KIND Collective. Women here are not only passionate and knowledgeable about beauty, but they also have an appetite for brands o ering high-performing vegan and cruelty-free cosmetics.
One of our key brand pillars is supporting women. As a business founded and run by a team of women, we are excited that
Sustainability is a key USP of your company, as is being a vegan and cruelty-free brand. Tell us more.
When launching The KIND Collective, we set out to create a range of consciously driven, vegan and multi-purpose cosmetics that anybody could add to their beauty routine. We also work closely with our supplier partners to make our products as a ordable as possible without compromising on quality.
We believe it’s important to be transparent with our customers on where our products are made and the steps that we’re taking to ensure our range is held to a high standard without compromising on e cacy or price. This includes important practices such as our PETA accreditation, our boxes being made from TreeFree bamboo packaging, and our hero Australian-made range.
What are your best-selling products?
I’ve loved watching the response to our brand in the Middle East, and seeing the popularity of products grow. Our most best-selling product is the Miracle Glo Serum, which is a good example of a multipurpose product that gives your skin an amazing luminosity. It creates the smooth base of a primer and the megawatt glow of a highlighter, all while nourishing skin with a serum base of hyaluronic acid and natural plant botanicals.
To complement this, our Hero Brow Groomer 2 in 1 Colour and Treatment has been really popular, as the brushable tint helps to thicken, shape and define brows while also using nourishing ingredient to stimulate brow growth.
How have you sustained your business as entrepreneurs?
Pia and I have been business partners since 2004 and have worked with leading Australian retailers in the beauty industry across creative, strategy, brand planning, exclusive brand development, buying and product sourcing. Our experience, knowledge and solid business foundation have allowed us to self-fund and launch KIND.
As with any new opportunity, particularly a large undertaking such as ours, we have had to be meticulous in prioritising resources and time.
We are in the fortunate position of having many amazing opportunities for us, so one of our biggest challenges is making sure we are clear on the vision and strategy for the brand moving forward and making sure we are investing in the right areas.
What’s next for the company?
Right now, we’re working on establishing KIND as a trusted Australian, womenowned beauty brand that offers more than just the opportunity to “look pretty”.
We want to become the new go-to for beauty consumers looking for active, nourishing and cutting-edge cosmetics.
In the years to come, we are up to the challenge to grow to be a global powerhouse, and with that scale and volume, we will be able to build greater recognition for our charity partners through supporting women.
How can brands walk the sustainability path without hampering their bottom line?
Ultimately, we believe that there is no other option. Research has been showing for years that consumers – especially the empowered younger generation – are looking for brands that offer more than just a product; they are rewarding brands that stand for something with their spending power. We have seen this firsthand with the loyal ‘’KIND” community we are building.
While sustainable practices can often come at a cost, with advancements in technology more sustainable options are becoming more accessible and that’s a great thing. Being true in purpose is also a great way to keep good people. Many businesses don’t take into account the cost of losing people and retaining a talented team. There is so much more required of a business to attract and keep a team and this goes a long way.
Any words of inspiration for female entrepreneurs?
Just go for it. Make sure to surround yourself with the right support network who will be able to mentor, encourage and challenge you.
You don’t need to know all the answers, but you do need to know who to call on for advice and help. Be generous with your time in helping other business owners. It feels good and you always have someone happy to help you when you need it.
The region’s highest profile business event that commemorates the individuals and companies positively impacting and influencing the GCC’s economic ecosystem.
Date: Wednesday, 23rd November 2022 Time: 7:30PM Venue: Central Park Towers, DIFC Offices entrance, P3, Plaza Dress code: Business attire
Book your table for the Gulf Business Awards now by reaching out to manish.chopra@motivate.ae
awards.gulfbusiness.com/2022
#GulfBusinessAwards
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