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ANALYSIS

INTELLIGENT MOBILITY: REDUCING THE IMPACT OF TRANSPORTATION In light of the recent Volkswagen emissions scandal, International Innovation’s Rosemary Peters talks with Paul Zanelli of Transport Systems Catapult about how autonomous cars and other intelligent mobility innovations have the potential to prevent further scandals in the future “Isn’t diesel dirty?”

This was the question that Josie Cavaluzzi, age 76, asked of her twin sister, Teresa Dahlquist, in the sixth instalment of Volkswagen’s Old Wives Tales advertising campaign that played out on American televisions earlier this year.

In this 30-second advert, the pair quipped about Teresa’s decision to buy the diesel-powered Volkswagen Golf TDI, which Cavaluzzi insists is dirty. Fuelled by salty interjections from their older sister, Mary Bartnicki, Dahlquist gets out of the vehicle, whips off her white scarf and places it squarely behind the exhaust pipe to show how clean the air is that is being emitted.

For decades, the self-declared Golden Sisters have been making audiences laugh with their sassy pop culture conversations. Wanting to cash in on the trio’s popularity, the automotive giant Volkswagen hired the sisters to use their humour in a campaign to debunk the old wives tale that ‘diesel is dirty’.

Unfortunately, these videos must now add the word ‘irony’ to the adjectives that describe its qualities in light of the recent Volkswagen emissions scandal, which shows the company has been cheating on its diesel engines’ emissions tests.

VOLKSWAGEN EMISSIONS SCANDAL In September, the brand’s image took a major hit in headlines across the world when the US Environmental Protection Agency announced their discovery that the company had been fitting some of its models with ‘defeat devices’. These devices enable cars to ‘sense’ when they are being tested in order to alter their performance and meet environmental standards.

Outside of this mode, engines emit nitrogen oxide pollutants up to 40 times above what is allowed in the US, and Volkswagen has since come forward to admit that 11 million cars worldwide have these devices.

The automotive giant is aiming to try and fix the damage the scandal has caused. “The irregularities in our group’s diesel engines go against everything Volkswagen stands for. We will do everything necessary to reverse the damage, and we will do everything necessary to win back

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your trust,” said the then CEO Professor Dr Martin Winterkorn in a press release when the news first broke.

Since news of the Volkswagen emissions scandal broke, the company has started a major investigation into its vehicles, and Winterkorn has been replaced by Matthias Muller. Though showcasing the company’s dedication to being honest going forwards, so far the results have brought Volkswagen under further fire – the company announced earlier this month that nearly 800,000 of its vehicles have also been underrepresenting their carbon dioxide emissions. This is a problem that is not only bad for the environment, but also for customers’ wallets, as it means their vehicles are consuming more fuel and they will have higher taxes levied upon them.

THE IMPACT OF TRANSPORTATION Concerns over the environmental impact of transportation are not specific to Volkswagen’s cars. It is a problem for each of the 1 billion cars on the planet as a whole – a fact reflected by the International Energy Agency’s Transport, Energy and CO2 report, which estimates that transportation accounts for nearly 25 per cent of global energy-related carbon dioxide emissions.

The impact of transportation is not just environmental – it is also a drain on people’s finances. In fact, it is the second largest expenditure for families each year. Moreover, people aren’t even happy to spend the cash. According to a recent survey of UK citizens by Transport Systems Catapult (TSC), 17 per cent of respondents consider public transport to be poor value for money with the ‘high cost of the journey’ being the most cited pain-point.

“Within our cities, population growth, traffic, pollution and the overall transport experience are such that a change in direction is needed,” Chief Technical Officer Paul Zanelli of TSC says. “Traditional solutions such as road widening schemes and additional trains don’t go anywhere near the level of increase needed to meet future projections for transport needs.”

However, Zanelli and his comrades think that they can help reduce the environmental and economic impact of transportation through the creation integrated and intelligent transportation systems. “If we look around us we can actually see a huge amount of latent capacity that intelligent mobility could access,” he shares.

IS INTELLIGENT MOBILITY THE ANSWER? At its heart, intelligent mobility is a form of frugal innovation that relies on using new and emerging technologies – from the Internet of Things to improved modelling and visualisation capabilities – to efficiently move people and goods around the planet.

However, the end goal for those working in the burgeoning field is not only to quickly get a person or thing from point A to point B; they are being driven by a much deeper urge. Those who are working on intelligent mobility solutions both want to green up and reduce costs in the transportation industry while simultaneously using it as a tool to address wider societal issues, including increasing urbanisation, unfettered population growth, climate change and the rapid depletion of traditional energy resources.

Though it sounds like a tall order, Zanelli explains that intelligent mobility is capable of achieving these goals because it moves away from traditional ownership models and redefines mobility as an integrated service that takes people from doorstep to destination using whichever routes and transport modes are most efficient for any given journey. “For example a smart ticketing system might order a taxi to take a traveller to the train station for the main part of the journey, then have a driverless vehicle pick them up in the city to take them to their destination,” he shares.

Once we move away from individual ownership we can start managing the transport system in a more integrated way DRIVERLESS PODS A quintessential example of intelligent mobility that has grabbed the attention of many for its radical, paradigm-breaking activities is autonomous cars. These are vehicles that do not need a human in order to operate – a point of great contention and concern for many who worry that a car operated by a computer cannot be as safe as one driven by a human.

However, TSC strongly disagrees, and it has presented the proof to show why. Each year, there are approximately 1.2 million fatalities from car accidents, and studies have found that human error is responsible for approximately nine out of 10 of these deaths.

TSC sees intelligent mobility in the form of driverless pods not only as a way to reduce loss of life, but also as a more equitable form of transportation, as the pods could provide a new lease on mobility to people incapable of driving due to age or physical disabilities. Moreover, the industry looks primed to deliver these benefits at much lower prices.

“Autonomous cars can bring down the cost of service, giving greater accessibly to a wider demographic whilst also allowing a greater focus on the customer rather than the vehicle in terms of the experience,” Zanelli expands.

Group at the University of Oxford. The team has been working together to create prototypes of electric-powered autonomous cars.

These driverless pods can comfortably fit two people and are mounted with several sensors, stereo cameras, laser-scanners and radar-based obstacle detectors, giving the vehicle 360 degrees of visibility and the ability to stop should an object suddenly appear in front of the vehicle. So far three have been built with the goal of optimising their functionality for driving around the pavements of Milton Keyes, UK. With time, a further 40 driverless pods and a fleet of road-based autonomous cars will be built off of the back end of this project. “I think it won’t be too long before we start seeing pods in other cities around the UK, and possibly other cities around the world,” Neil Fulton, Programme Director, said in a video on TSC’s website showcasing the LUTZ Pathfinder project.

AN INTEGRATED VISION FOR THE FUTURE Driverless pods are just one of many projects that TSC is working on in the field of intelligent mobility – an industry earmarked to reap more than £900 billion per year in the next decade. The group is also developing unique assets the UK transportation industry says it needs to create intelligent, integrated transport systems that function across multiple forms of transport, such as rails and airways. For example, it is working on an integrated departure planning information system for UK airports as well as the creation of an integrated test environment for transport planning, and applications and new ways of visualising data and information.

Once we move away from individual ownership we can start managing the transport system in a more integrated way “Once we move away from individual ownership we can start managing the transport system in a more integrated way. This means we can have fewer and more efficient vehicles, as well as having less vehicles such as trains and busses operating below capacity,” Zanelli concludes.

“Electrically powered vehicles can also be integrated with renewal energy solutions to act as energy storage units when they are not in use. All of these things will have a huge impact on pollution and greenhouse gases.”

As such, the organisation has decided to put itself on the map through the Low-carbon Urban Transport Zone (LUTZ) Pathfinder project. For the past two years, TSC has overseen collaborative efforts between designers and manufacturers from RDM and the Mobile Robotics

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In just four years KIC InnoEnergy has turned itself into the largest European accelerator of sustainable energy innovations. International Innovation caught up with its Innovation Director Elena Bou at its annual business booster event, TBB.2015, to discover more about sustainable energy trends and sentiments on the continent, as well as how the organisation is creating strong connections between start-ups with big companies What is The Business Booster 2015 (TBB.2015)?

It is KIC InnoEnergy’s annual Business Booster. The event brings ventures together with industry (who usually are the first customers) with the objective of starting a conversation. From there, KIC InnoEnergy acts as a bridge between the two to facilitate the relationship and make actions happen quickly and smoothly.

In your talk at TBB.2015 you mentioned that since 2008 the world has been in an energy transition. How have economists concluded that this transition is happening?

Many things can contribute to an energy transition – technology, policy, society and the consumer, to name a few. In this case, there are two main indicators that economists are pointing to show we are currently in a transition. One is that society is changing the way it is supplying its energy – namely, the fact that the renewable industry is here. The other is the fact that consumers are using and interacting with energy in different ways.

What is important to me is that we, as normal citizens, can actually see that things are changing.

Do you mean changing in terms of how renewable energies are expanding and being more widely adopted?

Yes. There are currently huge efforts and investments to foster renewables as the way to supply the energy needs of the future. While we clearly haven’t achieved an optimum state because the maturity of the technology is still evolving (both to be more efficient and more affordable), there is substantial evidence that this trend is likely to continue. The transition is not finished yet. To see what I mean, you just have to look at the industry – previously it was extremely small, but today there are huge industries in the field that are creating a lot of really innovative jobs.

Can you expand on how the relationship between the consumer and energy is in flux?

It is becoming more distributed. This can be seen with micro generation. There are now consumers that are producing their own energy, whereas before these people would have solely consumed it. Moreover, more and more ordinary citizens are actually worried about energy and environmental issues. The more this happens, the faster the energy transition will occur.

In your talk you also mentioned that there has been an increasing social reaction to energy production and consumption. What was the main message you wanted to deliver?

My message was to industry. It was to show them that things are changing, and if they continue with their activities following business-as-usual, in a few years they will not be here.

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and are risk adverse because they want to know that the money is going to come in and when.

However, they are experienced companies that own the customer base and know the market.

However, this is not a dramatic situation. It is just that times have changed. In order to seize opportunities from this change, companies have to accept that the situation has changed and be smart enough to actually see the change as an opportunity. For instance, non-traditional players are coming to the energy industry, but has any energy industrial player thought about how they can go to the other markets? Many don’t talk about it because they have boarded themselves up in their little mountain within their world. In my talk I tried to shine a light into this mountain and share their options with them.

The way I see it, they have two options. First, they can insist on building big walls to ‘protect’ themselves from the outside world and to hide away from the reality. Second, they can open their eyes and open their boundaries. The energy industry needs to change its business model and look for new opportunities because the business models that were fine yesterday aren’t valid anymore.

High growth ventures, on the other hand, are flexible and entrepreneurial teams that are brave enough to take the risk to launch disruptive innovations onto the market. They are the ones who think outside of the box because they do not necessarily have the same pressures in terms of stakeholders. However, with a lack in experience, ventures often have a hard time capturing customers and breaking into the market – an area where big companies dominate.

How is KIC InnoEnergy trying to foster collaborations between big businesses and start-ups?

We have many ways that we are working to build and care for these collaborations. One big part of this is TBB.2015.

Through this event, we are saying to big industry: ‘Hey, you are great, but start doing something!’

What is one way that they can really find these opportunities?

On 21-22 October, they had access to 106 different innovative solutions to sustainable energy issues. Maybe not all of the innovations present will work for each industry member’s business strategy, but considering the number of innovative solutions, at least a few should.

It is by starting to collaborate with other companies such as start-ups. It really is a win-win collaboration in terms of innovation and risk.

We also hope this event will help industry reflect upon the fact that there is a whole pool of opportunities sitting in front of them – they just need to grab them.

Can you elaborate on that point?

Have you ever seen an elephant dance? That is a big company trying to do innovation. They often lack creativity

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SEVEN INNOVATIONS THAT COULD SHAKE UP THE SUSTAINABLE ENERGY MARKET Last week, KIC InnoEnergy brought together over 100 sustainable energy innovations from all across Europe at TBB.2015. We share seven breakthrough products showcased at the event that could help make the energy sector cleaner, greener, cheaper and more efficient

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1. RVE.SOL

5. SIT & HEAT SPORTS

The problem: Open-fire fuel wood and charcoal cooking claim the lives of more than 1.6 million people each year due to the respiratory illnesses they cause. Moreover, use energy sources emit more than 520 Mt of carbon dioxide into the atmosphere in the same timeframe.

The problem: From football to rugby and everything in between, sport stadiums all face one major heating issue – they consume a major amount of energy each week as they house scores of people intent on catching historic sporting achievements. While much of this energy is used for legitimate purposes, these stadiums also generate a great deal of waste – especially in the winter – when they using items such as gas heaters to keep the stadiums’ occupants warm.

The solution: Portugal-based innovators at RVE.Sol created KUDURA, a utility container capable of providing clean water and energy in rural locations rife with a lack of electricity and drinkable water.

2. HYSILABS The problem: Though an incredible source of synthetic energy because it is so clean, cheap and abundant, hydrogen is incredibly hard to store because of its explosive nature. This storage issue in addition to intertwined safety issues and high transportation costs are major issues standing in the way of its global adoption.

The solution: HySiLabs’ creators Pierre-Emmanuel Casanova and Vincent Lôme have developed an innovation that addresses the issues standing in hydrogen’s way. Through the combination of two liquids that can be stored at room temperature, HySiLabs is able to generate hydrogen on demand, thus avoiding the need to store hydrogen as an explosive gas. “Our revolutionary liquid fuel can be packaged for small portable generators as well as for production on industrial scale,” said Casanova. “By proposing a usage experience similar to current liquid fuels, our invention enables a smooth transition from fossil to alternative clean fuel.”

3. PAMYRA The problem: Every day on the streets of German cities and highways, nearly 40,000 lorries transport cargo from point A to point B. However, only about half of these vehicles are fully loaded. These semi-packed lorries are not only negatively impacting the environment, they are also clogging up Germany’s traffic density. Moreover, the issue extends beyond Germany.

The solution: A trio based in Germany has come up with a solution for haulage companies to fill their vehicles to capacity. Using the specially designed online platform Pamyra, these companies can advertise their deadweight capacity on specific routes and private customers can purchase this space, so long as the detour required to deliver the extra goods is within the advertising company’s stated detour distance.

4. SUPERSTORE The problem: Buildings account for approximately 30 per cent of the total energy use in the Netherlands. Supermarkets are an extremely heavy user of electricity within this– they use approximately 4 megajoules per square metre and much of this energy use is attributable to refrigeration systems.

The solution: Siezte van der Sluis, the owner of Superstore, has developed a controller for supermarkets’ refrigeration systems that can reduce refrigeration needs on demand that would save supermarkets money and reduce their environmental footprint. This means it can postpone or accelerate electricity consumption to periods when the electricity cost is at its lowest, but while maintaining the temperatures legally required.

The solution: Sit & Heat Sports offers seats that are 95 per cent more efficient than traditional gas heating systems. Moreover, these seats lead to lower operational costs and lower carbon dioxide emissions. They also have the added benefit of making the crowd more comfortable.

6. BONEFFICE The problem: Though many of the inventions showcased at TBB.2015 were in the renewable energy vein, BonEffice’s innovation is attempting to reduce the cost and environmental impact of coal-powered power plants, as these sources of power production will not simply disappear as renewable energy increases in use.

The solution: “BonEffice System provides a software based management system that improves the efficiency and saves fuel on fossil fuel power generation,” said the team behind the creation. “The deterministic model of thermal performance recognises heat rate deviation on power unit elements and recommends actions.” In fact, the system provides real-time recommendations that are capable of decreasing consumption of fuel at a power plant by 1-2 per cent.

7. 3SSOLAR The problem: Many developing countries suffer from a power supply that is liable to experience interruptions and shortages. For example, controlled load sheddings are a nearly everyday experience in South Africa. When a load is shedded, all the buildings in the area affected – be them houses, schools or hospitals – must go without electricity for somewhere between 30 minutes and three hours.

The solution: 3SSolar has come up with an invention to help businesses and households escape the issues caused when power is cut. The 3SSolar UG BBBOX is capable of picking up the electrical requirements of items connected to it within 20 milliseconds – that is fast enough to keep essential business items, like computer, security systems, electronic cashier systems and LEDs from shutting down.

“The BBBOX is perfect for small and medium businesses, offices, medical practices, domestic houses or even police stations or public services who are not able to place small generators or want to replace them to reduce air pollution,” said the team.

These are only seven of the 106 innovations showcased at TBB.2015.

You can find more information about the ideas pitched on TBB.2016’s website.

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5 REASONS WHY THE 100% CAMPAIGN FOR CLEAN ENERGY WILL FIND The Solutions Project is a social enterprise whose goal is to make clean energy more accessible and affordable for all SUCCESS IN 2014, IT launched the 100% Campaign, a public awareness, consumer choice and social good campaign that started in New York and is rolling out across the US. The purpose of this campaign is to hold activities, events and calls to action that drive demand

The Solutions Project has concrete targets

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For any organisation to be successful, its members need to be pulling in the same direction. To achieve this, the Solutions Project has been very specific about what its goals are and how it defines clean energy – definitions that are at the heart of the 100% Campaign’s actions.

First and foremost, the Solutions Project’s goal is to see the world transition to 100 per cent clean, renewable energy by 2050 for all purposes. Defining clean energy as wind, water and sun, the organisation is adamant that it is entirely possible to meet the world’s energy needs using these three renewable resources.

“Our definition is explicit about keeping oil in the ground and instead we advocate for tapping into those natural, renewable, hyper local sources of energy that don’t cause any pollution, don’t endanger our air and water and the land that we call home,” says Sarah Shanley Hope, Executive Director of the Solutions Project.

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and accelerate the growth of clean, efficient energy. After researching qualities that make campaigns successful, Rosemary Peters sums up why she thinks both the campaign and the Solutions Project will meet their goals.

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The organisation is rooted in strong scientific evidence Another aspect of successful campaigns is credibility.

The 100% Campaign – and the wider Solutions Project itself – is credible because its goals are based in science.

The roots of the organisation grow out of research that Professor Mark Jacobson from Stanford University did in 2009.

With collaborators from University of California, Davis and Cornell University, Jacobson co-authored a plan to power the world for all purposes with renewable energies. The evidence from this research (which is supported by 12 other independent, peer-reviewed studies) shows exactly how humanity can transition to using 100 per cent clean, renewable energy for all purposes by 2050.

These are facts that the organisation is happy to share through its two interactive maps. The first is a map that breaks down how energy should be distributed in 139 countries across the globe given their local renewable resources and using modern-day technological advancements. The second does the same, providing detailed plans for each of the 50 US states.

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The 100% Campaign appeals to people

It uses storytelling

from different groups of society

to make its points

When an organisation launches a campaign, the campaign needs to have a strong rallying cry – something that brings all the participants together. The 100% Campaign achieves this by making renewable energy inclusive, taking actions that cut across race, gender and nationality.

People are really bad at remembering facts and figures. However, one thing that we are really good at is remembering stories. Successful campaigns seize on this fact.

Hope stresses this fact: “That’s the first step to getting to 100 per cent clean energy – including everyone.

Therefore, we are building cultural bridges, trying to find ways to engage people that don’t consider themselves environmentalists or activists in this energy transition.

The bottom line is that the technology is available today, so are the solutions and actions that anybody could take.

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The 100% Campaign shows people why the cause benefits them personally Generally, campaigns that do well focus on motivating their audiences. This is because campaigns that focus on motivation also exude a sense of warmth, happiness and excitement, drawing people to them like moths to a flame.

A major way that the 100% Campaign is motivating people is by showing them the personal benefits that clean, renewable energies can offer, both economically and socially. For example, the campaign often talks about how clean, renewable energy is helping individuals become independent from power companies through distributed power sources.

The 100% Campaign keeps storytelling at the centre of all that it does, spreading its message not by giving people numbers and statistics, but by sharing the stories of real people. For example, leading up to the final Hunger Games film, the campaign partnered with an organisation called the Harry Potter Alliance, which has helped hundreds of thousands of young people who are inspired by the young leaders in films like The Hunger Games to lead social change and action. “We’ve told the stories of real clean energy leaders making change happen not only in their own lives and in their own communities, but also at a systems level,” says Hope.

Take the story of Krystal, for example. Krystal is a crew leader for an organisation called Grid Alternative, which brings solar and energy efficiency to low income families across a number of states in the US. In addition to enabling access to affordable clean energy to working families, they also employ people from the neighbourhood.

“This piece tells a story where she’s the hero, and clean energy technology is just the tool that helps her win. That’s really a line with The Hunger Games theme: we’re not just telling Krystal’s story through that [trope], but the stories of young, clean energy warriors,” says Hope. “That is what is novel about the campaign; it’s how we – through culture – tell stories, celebrate the change that’s happening in the energy sector and build bridges so that a 100 per cent clean energy future is available to as many communities across the country as possible.”

It also talks about how renewable energies are helping communities thrive by creating jobs. “I grew up in Buffalo, New York – a post-industrial city,” shares Hope.

“Manufacturing is returning to this city in the form of solar panels. A plant is going to be opening in Buffalo in the spring, offering up to 4,000 jobs. It is bringing manufacturing jobs back to a region that has been in economic decline for decades.

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FRUGAL INNOVATION AND ENERGY: FASTER, BETTER, CHEAPER

An expert in international business, marketing and innovation, Professor Jaideep Prabhu of University of Cambridge’s Judge Business School explains how frugal innovation is inspiring people to do more in the energy sector using fewer resources while delivering better results

You are a co-author of the best-selling book Jugaad Innovation: A Frugal and Flexible Approach to Innovation for the 21st Century. What is jugaad innovation?

Jugaad is the word that people in India use to describe frugal, flexible and inclusive innovation. It is not just about frugality – you know, doing more with less – it’s also about ingenuity. Thinking outside the box and laterally to find a way around problems. Often, there is a social component to jugaad innovations. They try to address some kind of market gap where basic needs are unmet in the mass market.

Is jugaad innovation the same thing as the Western concept of frugal innovation?

To me, these two terms are essentially the same thing.

Like jugaad innovation, frugal innovation captures basic ingenuity where people are trying to do more and better with less.

The word frugal makes it sound like the concept is specifically about finance. Is this true?

Some people equate the word frugal with cost cutting, but frugal innovation is not just about cutting costs. It is about coming up with better solutions using less.

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To achieve this, innovators and entrepreneurs are having to go back to the drawing board and rethink a whole problem to then come up with a solution that is just as good (or preferably better) than the current solution in place while also having more desirable characteristics; for example, a lower carbon footprint. It’s no small order!

Often when you talk about jugaad and frugal innovation, you also mentioned the formal and informal economy.

Who is part of the informal economy and why?

There are about 4 billion people – which is about half of the world’s population – who are outside or have limited access to the formal economy.

There are many attributes that qualify someone as being in the informal economy. People in this economy do not have access to the kinds of everyday solutions we take for granted in the formal economy – banking, for instance.

Many people equate the informal economy with developing countries. Is this fair?

Not at all. The number of people in the informal economy who live in Western Europe and North America is shockingly high, as shown by a recent study that the US’s regulator for the banking industry – the Federal Deposit

Insurance Corporation (FDIC) – published a few years ago.

It found that approximately one-third of US households are either unbanked or underbanked (eg. not fully using the banking system and don’t have credit cards, etc.).

It also found that, at least in the US, there is a very large number of people who operate in the cash economy. Often they are migrants who don’t see the benefit of having a bank account or simply cannot gain access to one where they pay a monthly fee.

Since people who are not banked, or are underbanked, do not have access to formal ways of saving, borrowing, insuring themselves or paying bills, they often have to resort to informal ways of getting the same services.

What types of informal methods are starting to crop up?

Innovative business models involving mobile phones is a major one.

Whilst people in the informal economy may not have access to things like banking, they do have access to mobile phones. Not only is this tool helping people across the planet communicate, it is also helping those in the informal economy gain access to financial services they would not have otherwise had, for instance through mobile payment services like M-Pesa. Increasingly, financial service providers are starting to use mobile phones’ data to track how people pay their bills and to get a sense of a person’s credit worthiness.

Another solution that we see cropping up in the emerging world is similar to a ‘pay-as-you-go’ model. People are paying bills in tiny chunks – perhaps pennies at a time in some cases. For example, in Kenya a company called Azuri Technologies offers pay-as-you-go solar systems that provide energy to rural, off-grid communities. Azuri collects payments using prepaid scratch cards.

How does that work?

Azuri will come and install a kit in a home and every week the homeowner will buy a scratch card that reveals a number the homeowner must then text to a central server.

This server sends back a code that the homeowner must punch into their equipment, allowing the energy to flow from the panel to the lights for a week.

This example shows another hallmark of the informal economy – namely, that people in this economy often don’t have access to the electricity grid. How has jugaad and frugal innovation started to apply to the energy sector?

The energy sector is such an important sector. It is at the heart of pretty much everything. For example, you quite often can’t have good healthcare or education without energy. Unfortunately, large parts of the world – more so in the emerging world, but also in the developed world – don’t have access to cheap, clean energy. Especially in developing countries, they still have to use things like kerosene or biomass for lighting, cooking and heating.

These are bad for their health – for example, kerosene can cause fires and kill people in huts – and for the health of the environment.

Whilst we have technologies that are clean (such as solar) that also provide a much better quality of electricity,

we need to overcome a new challenge affecting the developing and developed world alike – the cost! This is where we are seeing very innovative models. The frugal innovations are not so much about the technology (though the technology is frugal because it is using fewer resources or ones that are renewable), as much as they are about the business model.

As in the Azuri example, entrepreneurs are figuring out how to make clean energy affordable for people considering a wide array of complexities – such as those who are earning on a daily basis, only have small amounts of money to spend, don’t have bank accounts and can’t buy things upfront.

There seem to be some deep-seated social elements underpinning these frugal innovations and their success. Can you discuss the social side of frugal innovation?

One of the very exciting things I have encountered is the rise of what one can call social businesses. These are social enterprises or start-ups that are trying to solve a specific problem. While their objective is similar to companies (eg. they are market driven, want to generate a profit and aim to scale their activities), their metrics are more like a charity’s. For example, instead of shareholder returns, they may be more interested in number of lives impacted.

Increasingly, we are also seeing big businesses being as concerned about other stakeholders (eg. customers, regulators, members of society) as they are about turning a profit and maximising shareholder value. There are many industries having to be increasingly like this, not just energy – food, banking and fast moving consumer goods, to name a few.

Finally, we are seeing purpose-led organisations. Unilever is a leader in this field. For example, its CEO Paul Polman launched the Unilever Sustainable Living Plan that calls for the whole company to double its sales and halve its footprint by 2020.

Why do you think this social enterprise trend and greater focus on purpose and values are on the rise?

The social mission seems to be coming back to large companies for all sorts of reasons. I think in many cases companies are recognising that it is in their strategic interest to do these things. For their own long-term viability they need to think about securing scarce resources such as water, wood, minerals, etc.

Moreover, they have to secure their customers and their employees. They are thinking up credible stories that will bring all these people along with them on their journey.

For example, things like the Sustainable Living Plan give everyone a vision of what to do and a purpose that is beyond ‘sell more of this stuff no matter what’. In fact, Unilever was recently the third most searched company on LinkedIn behind only Apple and Google! I believe it is because they are giving people a larger purpose to work towards.

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