SUSTAINABLE EMEA ISSUE 02/17
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EUROPE / MIDDLE EAST / AFRICA
NATIONAL WATER CONSERVATION
AND PIPELINE CORPORATION ALSO FEATURED THIS ISSUE
EUROPEAN INVESTMENT BANK â€¢ SOFIDEL
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EUROPE / MIDDLE EAST / AFRICA
Welcome to the latest Europe, the Middle East, and Africa (EMEA) edition of Sustainable Business Magazine
CONTENTS ISSUE 02/17 02
Q&A Mark Clintworth, Head of Shipping at the European Investment Bank
Q&A Luigi Lazzareschi, CEO, Sofidel Group
Kenya Pipeline Company
Sustainable Business Magazine aims to spread awareness of the values of sustainability, as well as the brilliant ways in which organizations continue to meet challenges and champion corporate social responsibility.
National Water Conservation and Pipeline Corporation
Davis & Shirtliff
We start the edition with an in-depth Q&A with Mark Clintworth, Head of Shipping at the European Investment Bank, in which Mr. Clintworth discusses the potential implications of climate change and upcoming decarbonisation for the global shipping industry. Our second Q&A features Luigi Lazzareschi, CEO of Sofidel Group, who tells us about their history as one of the world leaders in tissue paper production and how they continue to promote sustainability and corporate social responsibility. Sofidel also feature on the back cover of this edition, which highlights how they are rewarding their most sustainable suppliers.
Procter & Gamble Kenya
Power & Electricity World Africa 2017
The main focus of this edition is on how some of the most important and influential companies in Kenya are promoting sustainability. We spoke to Joe Sang, Managing Director of Kenya Pipeline Company, about how the petroleum distribution company contributes to Kenyan economic and social development. Eng. Ali Hassan, Ag. Managing Director at the National Water Conservation and Pipeline Corporation, and their Board Chairman Hon. Dr. Julius Kones, told us about how the organization has grown in conjunction with demands on Kenya’s water supply. With David Gatende, Group CEO of Davis & Shirtliff, we discussed how the water and energy solutions company is working to support a progressive vision for East Africa. Finally, we spoke to Procter & Gamble Kenya’s Managing Director, Vivek Sunder, and Communications Manager, Irene Mwathi –Miheso, about tailoring brands for the region, social responsibility, and being one of Kenya’s best companies to work for. Details of upcoming sustainability events in Europe, the Middle East, and Africa throughout June and July can be found on our events calendar. This edition’s featured event is Power & Electricity World Africa 2017 which took place in Johannesburg, South Africa, on the 28th and 29th of March. For more information please visit www.sustainablebusinessmagazine.net We hope that you find this issue both interesting and inspiring. Thank you for reading. The Sustainable Business Magazine Team
© SBM Media Ltd 2017. No part of this publication may be reproduced in any form for any purpose, other than short sections for the purpose of review, without prior consent of the publisher.
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Q&A MARK CLINTWORTH
Mark Clintworth Head of Shipping at the European Investment Bank
What is the ‘climate vacuum’, and what are its potential implications for the global shipping industry? The ‘climate vacuum’ is the general lack of leadership in ship finance, and the industry more generally, around taking public actions to ensure that investment portfolios are prepared for decarbonisation. While there are certainly leaders on many environmental issues facing shipping, no one is publicly stepping out to seize the opportunities presented by decarbonisation. The implications of leaving climate risk unconsidered and unaddressed are twofold. First, there is the risk of lower returns from investments or increased risk of default. Carbon War Room’s (CWR) research is the first to demonstrate that this is a real concern if preparations are not made. Second, there is a risk that the first 2 | SUSTAINABLE BUSINESS MAGAZINE
step of decarbonisation will be less successful if practices aren’t in place to understand its risks and opportunities. Can you tell us about the Carbon War Room’s research which has led to these conclusions? I was a member of the Carbon War Room Shipping Operation’s advisory board through 2016. In that time, the board and I have been involved in steering their approach, including providing feedback on their research programme on stranded assets and climate risk in shipping. CWR’s team worked closely with University Maritime Advisory Services (UMAS), who they commissioned to undertake the techno-economic assessment of the impacts of future policy scenarios on vessel
shareholders will be able to position themselves for a profitable decarbonisation of the shipping industry. This will ensure that shipping remains a key driver of sustainable economic development. How could vessels be carbon stress tested? And how can other stakeholders in the industry adapt to better manage climate risk? CWR and UMAS have laid the foundation for vessel stress testing with this report. While CWR will continue with this work, such work will likely have to be commissioned and carried out by financial institutions themselves for the markets relevant to their investment portfolios. The recommendations from the report are that financiers and shareholders should enhance due diligence practices to ensure that the ship owners are anticipating changes in vessel technologies as well as anticipating the need for capital to make these changes. Fundamentally, this is about looking beyond current challenges in markets to ensure that vessels can deliver acceptable cash flow and that companies can deliver long-term value to shareholders. As a major financier of the EU maritime sector, how does the European Investment Bank intend to respond to these findings? The European Investment Bank (EIB) sees its role as providing a signalling point to the commercial banks. We look to finance projects that show commercial banks that they can profitably undertake similar projects, and implement the same forward-looking strategies around greenhouse gas emissions and climate change with their investments. We hope that our steps towards mitigation of climate risk will spur commercial banks towards similar action.
profitability. For the first time, this work has shown that the financial risks of decarbonisation in shipping are material. CWR’s previous work on retrofit lending policies and assessment of vessel efficiency by major ship financiers suggests that climate transition pathways pose risks to the banks that hold $400 billion of global shipping debt. The onset of climate policies in shipping is anticipated in the early 2020s. However, CWR’s previous work on stranded shipping assets identified that while some financial stakeholders are aware of stranded asset risks, few banks assess ship efficiency or have lending programmes in place to keep assets competitive once climate policies are implemented. However, the research also showed that this risk is manageable. By taking steps to mitigate these risks, financiers, owners, and
How is the Bank already supporting ‘green shipping’? Our whole ethos and corporate culture at EIB is based around supporting climate action through targeted financing that helps deliver EU climate policy goals. In the shipping industry, this is aimed particularly at the small- and medium-sized ship owners and operators that make up the majority of the industry. There are a myriad of these organisations in the market and we aim to ensure that they can access the opportunities of shipping’s decarbonisation. We are trying to work with manufacturers, ship owners, and shipyards to provide a facility to de-risk efficiency investments for financiers. To this end we have a European Fund for Strategic Investments (EFSI) supported EUR250 million Green Shipping Loan programme providing direct secured loans to the market to support sustainable shipping. We have also developed a EUR750 million loan guarantee programme expected to support around EUR3 billion in investments in green investments like alternative fuels. This is a benefit to all parties as the main equipment manufacturers need support to access these small and medium operators. We are also involved with the shoreside liquefied natural gas (LNG) infrastructure. c SUSTAINABLE BUSINESS MAGAZINE
Q&A LUIGI LAZZARESCHI
Luigi Lazzareschi CEO, Sofidel Group
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Can you tell us a little about the history of Sofidel Group? The story of the Sofidel Group began in 1966 in Lucca, Italy with Emi Stefani – who is still the President of the company - and Giuseppe Lazzareschi, my father. In the first years, the company grew focusing on investments mainly in production plants in Italy. At the same time we started collaboration with big retailers and by the end of the 1970s the company began to export finished products to France and Germany, countries geographically close to Italy and similar in terms of habits. The founding in 1997 of Delipapier, Sofidel’s French subsidiary, marked a strategic change: The activation of production directly in the end markets, in order to increase the quality of service and reduce logistic costs. This was the start of our internationalization strategy, developed between 1997 and 2007, through important green field investments in Poland, the United Kingdom, Spain, and Germany. Since 2008, we have focused on internationalization through targeted acquisitions of brands and production plants throughout Europe, as the crisis began to take effect and consumption was rising at a lower rate. In these years the Softis (Germany), Sopalin and Le Trèfle (France) brand acquisitions took place. The Group is currently implementing a new strategy of organic growth in Europe, focusing on the existing plants: Many of our sites were built in view of a considerable expansion and have enough space to be doubled in size and, in some cases, even tripled. As for the U.S. market – which we entered in 2012 – we aim to grow through a mix of acquisitions and important green field investments, like the one we are implementing in Circleville, Ohio. Sofidel is now present in 13 countries, employs over 5,800 people, and has a production capacity of over 1 million tons of paper.
reduce our direct carbon emissions by 23% by 2020 compared to 2009 levels and the indirect carbon emissions caused by third parties within the value chain by 13% - compared to 2010 levels - for every ton of paper produced. Moreover, we aim to reach 8% of our annual fuel consumption being covered by renewable sources. With respect to water resources the specific average amount of water used by Sofidel is well below the sector benchmark: 7.0 liters of water per kg of paper produced vs around 15-25 liters per kg.
How have you made sustainability and corporate social responsibility a cornerstone which guides all the group’s activities? Sofidel considers sustainability to be a strategic lever to increase competitiveness and promote durable growth in line with its mission and the UN 2030 Sustainable Development Goals, and is committed to guaranteeing social and environmental benefits along the entire chain of value creation. For this reason, the company has chosen to adhere to the “less is more” philosophy, which means minimizing the environmental impact in our operations, reducing waste, and promoting responsible consumption among our stakeholders. The final goal of Sofidel’s philosophy is the ever more efficient creation of products with an ever shrinking environmental impact.
Can you tell us about your high-profile sustainability partners? Sofidel believes in dialogue and collaboration. For this reason it has built alliances with influential partners to share knowledge and pursue common goals. Among these are WWF, WaterAid, UN Global Compact, Sodalitas Foundation, EU-OSHA (European Agency for Health and Safety at Work), and the Giuseppe Lazzareschi Foundation. Other collaborations are proceeding through Sofidel-owned brands and products in a number of countries. These include: Nicky with the Telethon Foundation in Italy, Nicky with the Woodland Trust in Great Britain, Nicky with Jack & Jill Children’s Foundation in the Republic of Ireland, Papernet with Médecins Sans Frontières, and Cosynel with Sos Children’s Villages in Belgium.
How does the Sofidel production chain comply with your principles? We implement strict policies. We only procure pulp certified by independent third parties with forestry certification schemes; we have put in place systems, devices, and policies to lower our greenhouse gas emissions, and measures to safeguard water resources.
What are your plans for the future of Sofidel and sustainability? We would like to continue our sustainable growth strategy, that is to say, to work every day to integrate development and quality of life. c
What investments have you made in protecting health and safety, preserving and promoting human rights, and spreading awareness about sustainability issues? I would like to mention at least a couple of steps we have recently taken. The first one is the program which was started last year regarding alcohol and road safety. Called “Alcohol-Free Truck”, the initiative was set up in cooperation with the Italian State Police and transport companies to prevent road accidents and guarantee the safety of transported goods and at the same time to increase awareness of the risks associated with excessive alcohol consumption and to improve the health and safety of employees in the group’s plants. The second step is related to our partnership with WaterAid, an NGO based in the UK, which works together with hundreds of local partner organizations to bring safe water, toilets, and hygiene to the world’s poorest people. Being perfectly aware of how precious water is as a resource both for natural balance and human well-being and hygiene, in the next three years Sofidel will support WaterAid’s operations and play an active role by involving its stakeholders in fundraising and campaigning activities for WaterAid.
How are you safeguarding and enhancing the natural environment? As far as forest resource protection is concerned, we are proud to source 100% of our pulp from forestry certified by independent third parties with forest certification schemes like FSC®, FSC Controlled Wood, SFI®, and PEFC™. Regarding CO2 emissions reduction, Sofidel has been the first Italian manufacturer to join the WWF Climate Savers project, aimed at market-leading businesses in the low carbon economy. Under this program we have committed to SUSTAINABLE BUSINESS MAGAZINE
KENYA PIPELINE COMPANY
KPC CONTINUES TO SECURE A RELIABLE FUTURE FOR THE COUNTRY THROUGH EXPANDING THE SCOPE OF ITS INFRASTRUCTURE.
PIPES MR JOE SANG, MANAGING DIRECTOR.
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Joe Sang, Managing Director of Kenya Pipeline Company, speaks to Sustainable Business Magazine about how the petroleum distribution company contributes to Kenyan economic and social development.
KENYA PIPELINE COMPANY STORAGE TANKS NAIROBI TERMINAL.
storage, and transmission of petrol, diesel, and aviation turbine fuel as well as lab analysis for customer quality certification and distribution of products to export markets. This work is supported by a committed corporate social responsibility (CSR) program that effectively embeds KPC into their local communities. MAINTAIN, IMPROVE, CREATE As an organization looking to consistently improve themselves and their resources so they may better serve their clients, KPC undertakes substantial maintenance and expansion work on their pipeline infrastructure. Joe Sang, Managing Director of KPC,
divulges information about three key capital projects currently being carried out: “First, KPC is in the process of replacing the existing Mombasa-Nairobi pipeline that has been in operation for 39 years. The construction of the 20-inch diameter pipeline commenced in 2014 and is expected to be completed by mid-2017. Once complete, the pipeline will ensure sustained, reliable, and efficient transportation of petroleum products in the region and meet demand up to the year 2044.” “Second, construction of four additional storage tanks at Nairobi Terminal each with a gross capacity of 33,366,000 liters is ongoing. The additional tanks will
BOTTOM LOADING AT THE EMBAKASI DEPOT.
Kenya Pipeline Company (KPC) was established in 1973 as a parastatal organization of the Kenyan government dedicated to the task of creating reliable, safe, and efficient transportation of petroleum products from Mombasa to the hinterlands. Running from Mombasa and through Nairobi, KPC’s pipeline system runs to the West Kenyan towns of Nakuru, Eldoret, and Kisumu. To this day, it remains the only refined petroleum pipeline in East and Central Africa. To this end it is crucial not only to the Kenyan market but also for nearby countries including the Democratic Republic of Congo (DRC), Tanzania, Rwanda, Uganda, Burundi, and South Sudan. KPC’s daily work includes a broad range of tasks centering on the reception, SUSTAINABLE BUSINESS MAGAZINE
KENYA PIPELINE COMPANY KPC ENGINEERS DURING A ROUTINE PUMP SERVICE.
THE NATURE OF KPC’S BUSINESS MEANS THE SAFETY OF BOTH THE HUMAN AND NATURAL ENVIRONMENTS AROUND THEIR INFRASTRUCTURE IS PARAMOUNT.
more than double the storage capacity of diesel and super petrol from the current 100 million liters to 233 million liters, effectively providing sufficient capacity for receipt of higher volumes of product expected once the Mombasa – Nairobi pipeline is replaced. This will maintain adequate stocks for petroleum products in Nairobi to cushion the economy against product outages.” “The third key capital project is the installation of additional loading facilities – required to cope with the rising demand for petroleum product uplifts – at Eldoret depot located in western Kenya. The project will
enhance the existing facilities to meet the anticipated increase in product uplifts by up to two million liters per day. The works entail installation of two bottom loading facilities with three loading arms each to load diesel, super petrol, and kerosene.” These projects follow hot on the heels of a major new pipeline completed in 2016 that has enhanced the availability of petroleum projects throughout Western Kenya as well as the export markets of Uganda, eastern DRC, Rwanda, Burundi, and northern Tanzania. This ten inch pipeline stretches 122 kilometers and has increased the KisuSTAFF IN THE LAB TAKING PRODUCT SAMPLES.
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mu depot product flow from 110,000 liters to 350,000 liters, maintaining and improving Kenya’s position as the regional economic powerhouse. Tank utilization at Kisumu has also jumped from 30% to 90%, drastically improving the efficiency and capacity that KPC is able to offer not only western Kenya but neighboring countries as well. PROTECTING ALL ENVIRONMENTS The nature of KPC’s business means the safety of both the human and natural environments around their infrastructure is paramount. Before any remedial or construction CSR DONATION OF AN AMBULANCE WORTH USD 95,000 TO MARSABIT COUNTY FOR THE BEYOND ZERO CAMPAIGN.
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KENYA PIPELINE COMPANY MORENDAT INSTITUTE OF OIL AND GAS INAUGURAL CLASS.
work is carried out, environmental impact assessments that meet international standards are completed for and improved by the Kenyan government. Furthermore, ongoing regular audits are carried out to ensure all existing structures maintain high levels of environmental safety and reliability. Given the reach of KPC’s pipes and storage facilities, it is no surprise that there are many human communities living within the organization’s footprint. They have therefore implemented CSR programs to improve the lives of people along the pipeline through
FOOD DISTRIBUTION IN THANGE.
individual empowerment initiatives for women, youth, and people with disabilities. These focus primarily on education, health, and sanitation. To fund these social initiatives, 1% of post-tax profits are dedicated to building and providing resources for such communities. One example is the recent creation of a scholarship fund by KPC which benefits disabled children, helping them to attend high school. This program is called the Inuka Disability Scholarship Program and is one of the most unique and socially
progressive CSR initiatives available in Kenya. It provides major opportunities for poor and marginalized children across the country to improve themselves and their communities. KPC also provides help with emergency and post-emergency situations, something Mr. Sang provides specific examples of: “In the Thange area of Makueni County, which was affected by an oil spill in 2015, KPC has provided food and clean water to the local residents and schools as the environmental clean-up is underway. The unprecedented
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time for more.
LAYING OF PIPES ALONG THE SINENDET - KISUMU PIPELINE.
scale of impact that has emanated from this support deserves a mention. Because of availability of clean water and food in the schools, many poor children have been kept in class and dropout rates have gone down. In the neighboring Ilatu village, we have erected a dispensary to offer affordable and accessible health care to hundreds of local people in Kibwezi West who used to walk long distances in search of basic health services.” ONGOING EXPANSION Having had a long and rich history as an integral part of Kenya’s energy security, the
next few years will see KPC continue to secure a reliable future for the country through expanding the scope of its infrastructure. “One of the most exciting plans is that KPC is set to commence construction of Kisumu oil jetty in April 2017 to facilitate safe transportation of petroleum products through Lake Victoria to neighboring countries,” says Mr. Sang. “The Jetty, which is set to take six months to construct, is expected to boost throughput in Kisumu by one million liters a year in Phase 1 and up to three million liters per year by 2028. This has the potential to turn Kisumu into a focal point of oil and gas commerce in the region
and become one of the busiest inland ports in Africa.” “The jetty will increase KPC’s competitive edge in the region as the leading oil transporter and it will target markets around Lake Victoria, expanding the export market into Uganda and mines in northern Tanzania. It will also create integrated marine fuel transportation in the region making it more efficient and commercially viable and reducing transportation costs for oil marketing companies.” With this addition to KPC’s already strong network of resources, the future is looking bright. c
INSPECTING OF THE NOW COMPLETE SINEDET - KISUMU PIPELINE.
TRUCKS IN KPC KISUMU DEPOT DURING TOP LOADING.
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NATIONAL WATER CONSERVATION AND PIPELINE CORPORATION
NWCPC IS COMMITTED TO LONG-TERM DAM CONSTRUCTION PROJECTS THAT WILL FACILITATE BETTER AND MORE EQUAL WATER DISTRIBUTION THROUGHOUT KENYA.
THE DAM CHAMPIONS Eng. Ali Hassan, Ag. Managing Director at the National Water Conservation and Pipeline Corporation, and their Board Chairman Hon. Dr. Julius Kones, speak to Sustainable Business Magazine about how the organization has grown in conjunction with demands on Kenya’s water supply.
The National Water Conservation and Pipeline Corporation (NWCPC) was born in June 1988, established by the Kenyan Government to be an autonomous agency reporting directly back to the Ministry of Water Development. Their prerogative was to improve the performance of the state’s water sector while also pursuing opportuni12 | SUSTAINABLE BUSINESS MAGAZINE
ties for commercialization. This mandate expanded over the following years to include assisting in the formulation of national water policy as well as enacting local water development schemes throughout the country. In 2002, however, a major change occurred: The Water Act 2002 meant NWCPC changed designation from a water
distributor to developer of long-term water infrastructure sustainability, thereby giving the organization much greater responsibility than they had previously held. This responsibility included the spearheading of dam construction schemes, flood control, land drainage, and expanding the bulk water supply held in reserve by water suppliers.
SIYOI-MURUNY DAM IN WEST POKOT COUNTY.
challenges faced is the empowerment of women and young children,” says Managing Director Eng. Ali Hassan. “We are aiming to provide easy access to water, which will help create a society where they can participate in education and other economic activities. This is because time not spent collecting water because it is supplied to the community is time that can be spent on work and education. In pastoral communities where
the seasons can be very dry, this is particularly important. Once this is possible the issues of women and children’s inequality will, we believe, come to an end.” To pursue this goal, NWCPC is committed to long-term dam construction projects that will facilitate better and more equal water distribution throughout Kenya. These are mapped out through a series of Five Year Medium Term Plans, the first of which SPILL WAY.
Underlining these responsibilities is an overall commitment to bettering the social welfare of all Kenyans through balancing water needs with water supplies. VISION 2030 One of the most important aspects of NWCPC’s current work is the Kenyan Government’s Vision 2030 program, which aims to accelerate the economic and social growth of the country towards a strong and sustainable long-term world economy in which all citizens are safe and secure across three pillars: Economic, social, and political. Development of clean, reliable water supplies is key to Vision 2030’s social pillar. Water plays an important role in any and every society, but in Kenya it is especially key to social equability. “One of the social SUSTAINABLE BUSINESS MAGAZINE
NATIONAL WATER CONSERVATION AND PIPELINE CORPORATION SIYOI-MURUNY DAM IN WEST POKOT COUNTY.
ended in 2012. During this first plan more than 20 dams were built including the expansion of the Maruba Dam from 0.6 million to 2.4 billion cubic meters storage capacity to supply the township of Machakos, and 20 medium multi-purpose dams supplying to communities in arid and semi-arid climates. The Water Act 2002 saw an important change in the way NWCPC relate to these projects. “The pipelines will now actually be
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taken over by the county water board after construction is completed because pipeline management is not our role anymore,” says Board Chairman Hon. Dr. Julius Kones. “In fact we no longer do any local county-based management of pipelines. We only construct dams. Everything after switch-on is handled by county water boards. That means we are able to focus entirely on improving the infrastructure at a nationwide level through
the construction of dams in order to meet the Vision 2030 goals.” RESERVOIR DOGS NWCPC has a number of dam projects underway at present, including the Siyoi-Muruny Large Dam that is at the construction stage. Being built in the county of West Pokot, the Muruny Large Dam will be the second largest dam in Kenya once completed and supply water to more than 200,000 people. Meanwhile, seven other dams are variously at feasibility and tendering stages with hopes of reaching construction soon. Spread across the country, some of these projects are sometimes more crucial than others due to their location. The Upper Narok Dam being built in Narok County, for example, is present in a region that faces heavy and severe drought. Dr. Kones explains, “Communities have been ruined due to the lack of reliable access to clean water so they rely on dams to provide them with a way of sustaining not only their livelihoods
but their lives. This is an important part of how we are able to support communities.” Every project must be in line with NWCPC’s seven-point CSR policy. This policy includes: Raising awareness of the local impact of NWCPC’s work; raising environmental awareness in communities local to the company’s projects; creating opportunities for local employment; supporting and improving where possible local educational infrastructure, such as through rehabilitation of schools; fostering opportunities for art, culture, and sports; supporting local health infrastructure such as through the provision of mobile clinics; and, perhaps most crucially, the provision of clean drinking water not only through dams but through boreholes and rehabilitated water tables. It is also important that every project undertaken by NWCPC adheres to environmentally sustainable methods of construction so NWCPC ensures everyone complies with the rigorous standards of the Environment Management and Co-ordination Act, including the submission of environmental impact assessment reports to the National Environment Management Authority. HISTORY OF THE FUTURE NWCPC’s portfolio is populated by a number of dam projects ranging from small to large. It is these large projects that the organization is particularly proud of, due to the management and resources required to successfully
complete them. These include the previously mentioned Muruny Dam, the 12 million cubic meters Chemususu Dam, and the 1.2 million cubic meters Kiserian Dam that is future-proofed against expected population growth throughout the 2020s. “Our history bolsters our future,” says Eng. Hassan. This future includes plenty more building of water infrastructure, including a number of important small and medium sized dam projects, but will also see NWCPC take on an even more significant role. Following implementation of the Water Act 2014, the
organization will become known as National Water Harvesting and Storage Authority with a newly revised mandate to support ongoing water development and sustainability in Kenya. This mandate includes the management of all national water storage facilities, and undertaking on behalf of the Government emergency interventions during periods of drought. Since their inception nearly 30 years ago, NWCPC have had a slow but steady rise and it looks like this upward trend is set to continue long into the future. c
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DAVIS & SHIRTLIFF
DAGAHELY REFUGEE CAMP. SOLAR WATER PUMP INSTALLED AT DAGAHELY REFUGEE CAMP AT DADAAB KENYA.
Sustainable Business Magazine speaks with David Gatende, Managing Director of Davis & Shirtliff, about how the water and energy solutions company is working to support a progressive vision for East Africa. GROUP CEO OF DAVIS & SHIRTLIFF, MR DAVID GATENDE.
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Davis & Shirtliff was started as a modest business by two British soldiers in 1946, shortly after leaving the army following World War Two. Eddie Davis and Dick Shirtliff chose to start new lives in Kenya and, together, created a company that focused on water supply solutions in Nairobi through the provision and maintenance of water pumps. These pumps have remained the companyâ€™s core business. In 1965, not long after Kenyan independence, the company began a relationship with Danish stainless steel pump manufacturer Grundfos that has continued
to this day; in 1971, a similar long-term relationship started with Australian brand Davey. The company also provides its own brand of affordable pumps under the name Dayliff. Today, however, Davis & Shirtliff are present in more than just the water pump industry segment. In total, the group is active across six segments: The supply, installation, and maintenance of water pumps; equipment specification and maintenance of boreholes; maintenance of swimming pools; supply, installation, and maintenance of solar power arrays; water treatment equipment; and tradi-
tional power generators. These six segments can be pared down into two sectors, summed up in the group’s strapline: “Providing water and energy solutions for Africa.” Great success has been achieved during decades of the group’s life and today they boast over 50 offices across East Africa. From Zanzibar, Tanzania, in the east to Lubumbashi, Democratic Republic of Congo, in the west; from Addis Ababa, Ethiopia, in the north to Livingstone, Zambia, in the south: Davis & Shirtliff are present in eight countries. The group has been a family affair throughout its existence with Eddie’s son, Alec, and grandsons, Edward and Henry, holding important positions, this continuity providing an important sense of lineage and tradition. Alec Davis bought out his partner and became managing director in 1990 and was succeeded in 2016, on the group’s 70th anniversary, by David Gatende when Alec Davis became Group Chairman. WORKING FOR KENYA Although a commercial business, the work Davis & Shirtliff undertake is often closely
tied to the progress and development of Kenya as a whole. This is best witnessed through their frequent humanitarian projects in conjunction with the Kenyan government and with NGOs. In 2015, for example, they undertook a project for the Rural Electrification Authority
to provide 34 schools in two counties with solar power generators. This was to make good on the recently elected President’s campaign promise to improve education by bringing laptops to every primary school in the country. Meanwhile, in 2016, Davis & Shirtliff worked with the United Nations
DAVIS & SHIRTLIFF EXECUTIVE TEAM.
THE OVERALL VISION IN BOTH THE SHORT AND LONG-TERM FUTURE FOR DAVIS & SHIRTLIFF IS TO CONTINUE EXPANDING THEIR FOOTPRINT.
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DAVIS & SHIRTLIFF High Commissioner for Refugees (UNHCR) to transform five traditional boreholes inside the refugee camp in Dagahaley into solar-powered pumps. Now completed, they provide more than 87,000 refugees with clean and safe drinking water. Supplying to and working in some of the driest and poorest parts of East Africa means Davis & Shirtliff play an important role in improving basic standards of living for many people. David Gatende, Chief Executive of the Group, divulges further: “When you talk about development in sub Saharan Africa, it really changes people’s lives. Kids here, when they go to school, they can be told – especially in remote areas – that before they start studying they have to go and fetch water. When water is available right there, though, they have more energy and time to commit to studying.” “There are also important health benefits. Many diseases are waterborne but by using our treatment equipment it is possible to get rid of 100% of them. When people don’t have good health or safe water, not only their health suffers but their productivity too. Providing these kinds of solutions using cheap or affordable energy
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Long lasting, easy to install borehole pipe
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EMBU WATER PROJECT. SOLAR POWERED BOREHOLE PUMP INSTALLATION IN KANYIRIRI, EMBU. THE PUMP YIELDS OVER 70,000 LITRES OF WATER PER DAY FOR DOMESTIC AND FARMING USES (IRRIGATION AND LIVESTOCK).
is very significant because it helps people in many different ways. This is summed up in another tagline of ours: ‘Improving people’s lives’.” Davis & Shirtliff is able to help even in wealthier urban areas. They supply a booster pump that improves water pressure throughout domestic water systems so that during periods of water rationing, such as droughts, people with the booster pump are still able to receive the water they need in their house. More than 4000 domestic pumps are sold every month. “I don’t know how one would work out the number of people that have been impacted positively by our solutions over the seventy years but it must easily be in the tens of thousands if not in the millions,” states Mr. Gatende.
tant are also symbiotic in nature. First, the location of Kenya along the equator means it sees consistent and steady sunlight year round. Second, the drop in cost from more than $5 per watt just a few years ago to $0.50 per watt today.
This means solar is not only a logical but an affordable solution for many throughout Kenya and East Africa, whether directly in school settings and, for example, from Population Services Kenya where the group have provided solar power to health
SUN UP Solar has become Davis & Shirtliff’s fastest growing segment, with 12% growth seen during 2016. There are numerous reasons for this but perhaps the two most imporSUSTAINABLE BUSINESS MAGAZINE
DAVIS & SHIRTLIFF that within the company this technology is being used. We also have solar water heaters so when people use the taps and showers they can use the solar-heated water. There are solar street lights in our head office, and we are currently rolling them out around all the branches. All 50 will use solar lights combined with energy saving LED bulbs and variable speed water pump motors to try and reduce energy costs.”
clinics, or in combination with water supply such as at UNHCR Dagahaley. Equally important has been the adoption of solar in the group’s own facilities. “We put a five kilowatt (kW) solar generator on our head office and connected it to our own grid,” explains Mr. Gatende. “It doesn’t feedback into the mains but reduces our energy bill by ensuring we pay
for 5kW less. In fact, it’s 10kW because we also installed 5kW on another old building. Another 5kW generator was recently installed on a new building in Mombasa, bringing total energy reduction across the company to 15kW. “Whenever we build new offices, such as the new one in Mombasa, there will always be a solar generator included. It is important
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SOFTWARE SUPERSTARS Embracing technology extends further than simply solar powered water heaters. Davis & Shirtliff have a strong and committed IT department that includes a number of software programmers working on means of improving the quality and efficiency of the group’s services. One example is the development of a vehicle queuing system similar to the app Uber that operates across the group’s motor pool. Streamlining the booking and usage of the 100 vehicles used by more than 650 employees equates to important savings in time and fuel. Mr. Gatende talks about some other tools developed by the IT department and used within the company: “Something we
D&S LODWAR BOREHOLE PROJECT.
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As well as being manufactured from the highest quality materials, all GWS products are rigorously tested and come with extensive warranties. Find out more about our product range on www.globalwatersolutions.com
BINGO. 21 BOREHOLES SUPPLIED AND INSTALLED BY DAVIS & SHIRTLIFF KISUMU BRANCH FOR THE COUNTY GOVERNMENT OF BUSIA BENEFITING OVER 10,000 HOUSEHOLDS IN THE REGION.
are very proud of is the customer relationship management tool. When you have 50 branches and 650 staff, with two-thirds of them out selling, tools are required to make it so that when they are in the field there are mobile apps for checking price lists, sending quotations, and connecting to the management system to give brief customer relationship reports in-situ that log directly into the system. All this is possible because we use Microsoft 365-based cloud computing.” “We use vehicle tracking so the motor pool is up on a screen in the Service department. This helps job ordering be much more streamlined. Our technicians have tablets and pads so they can file their reports and requisition things online, so that by the next morning they are ready to go to the next job. We consider ourselves IT savvy and invest a lot in these types of things.” One of Davis & Shirtliff’s three core values is ‘Altiora Peto’ Latin for ‘I seek higher things’ which is basically the desire to continuously improve what they are doing. The utilization of cloud computing and mobile apps goes a long way to accomplishing
this, enabling the group to maximize their time and physical resources. REDUCING THE WASTE-LINE The future for Davis & Shirtliff will comprise of further efforts to improve sustainability through reduction of waste across the group. A recent move towards digitizing paperwork is one method by which this is being achieved, but many other options are being explored as well. Centralizing operations, so that staff and client finances all run through a single system, will be important in streamlining internal processes. The overall vision in both the short- and long-term future for Davis & Shirtliff, though, is to continue expanding their footprint. Mr. Gatende concludes: “We’re just going to keep expanding so that we can have a bigger and bigger impact in the region. There are plans to go into new countries and in our existing countries such as Kenya, Tanzania, and Zambia we will be opening branches in new counties. Regional expansion is a top priority for us, and we want to support this with the group shared services development. As we go farther and farther afield,
we need to be able to stay connected. Whenever we open a branch it just seems to take off, so we are very confident about our future.” c
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PROCTER & GAMBLE
TODAY, P&G EMPLOYS OVER 850 PEOPLE IN KENYA DIRECTLY AND INDIRECTLY THROUGH THE SUPPLY CHAIN AND AGENCIES, AND P&G PRODUCTS REACH ALMOST 10 MILLION KENYAN CONSUMERS.
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LIFE Sustainable Business Magazine speaks to Procter & Gamble Kenya’s Managing Director, Vivek Sunder, and Communications Manager, Irene Mwathi-Miheso, about tailoring brands for the region, social responsibility, and being one of Kenya’s best companies to work for. Procter & Gamble (P&G), first set its base in Kenya in 1992, when they acquired the Richardson Vicks manufacturing plant in Embakasi, Nairobi. The first brands the company sold in Kenya were Vicks and Always. Subsequently, P&G has launched other flagship brands such as Pampers diapers (1998) and Ariel detergents (2009) in Kenya, as well as Gillette’s range of razors and Oral B toothbrushes after the purchase of the company in 2005. The company also sells Pantene and Head and Shoulders in the Kenyan market. The Nairobi office is the hub for all Equatorial Africa operations, spanning Tanzania, Uganda, Ethiopia, Cameroon, Senegal, Angola, and Côte d’Ivoire. Today, P&G
employs over 850 people in Kenya directly and indirectly through the supply chain and agencies, and P&G products reach over 10 million Kenyan consumers. CONSUMERS AT THE HEART OF P&G Throughout its existence - which is more than 175 years - innovation has been P&G’s lifeblood. As a company, they have more than 40,000 active granted patents worldwide, and have invested more than $2 billion in research and development since 2013. “We believe innovation starts with the consumer,” says Irene Mwathi-Miheso, Communications Manager for Procter & Gamble Kenya. “We gain insights into their everyday SUSTAINABLE BUSINESS MAGAZINE
PROCTER & GAMBLE
lives so we can combine what’s needed with what’s possible. Our goal is to provide them with product options at all pricing tiers to drive preference for our products and provide meaningful value. The best example in Kenya is the Ariel brand, which was launched into the market in 2009. This was after different samples of local stains such as ink, tomato sauce, and oil were sent to our Research Centre in order to ensure that the
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product we provided Kenyans would meet their needs. Five years later, Ariel became the market leader in Kenya as Kenyan consumers realized that it was doing what other brands were not able to do.” “There’s no sense in talking about Kenyan needs in a laboratory somewhere in Brussels,” says Vivek Sunder, Managing Director of Procter & Gamble Kenya. “Our laboratory scientists come down and
research on the ground, and they also come to understand the consumer habits and practices in partnership with the local office. That’s the source of information on what kind of innovations to bring to the regional market.” Always pads were the first sanitary pads in Kenya to introduce wings and to be individually wrapped, better protecting users and aiding in disposal. This was also borne out of consumer interaction.
“Very rarely do we have to formulate from scratch for a particular country; rather, we have to figure out what among the global portfolio is most relevant to the local market,” explains Mr. Sunder. “That’s where the local office and being close to the ground helps us customize our offering to meet local needs.” This local focus allows P&G Kenya to provide products which improve the lives of consumers. “We have seen this approach work in all the markets we operate
in and this has made our brands either number 1 or 2,” says Ms. Mwathi-Miheso. “Less than 1% of Kenyans own washing machines so most people hand-wash their laundry, and this is done maybe once a week. We found Kenyan women used many buckets while doing their washing as they rinsed about three times. This means that they not only end up spending a lot of time but also a lot of water in every wash. With Ariel, we’ve been able to cut down the wash time by 30%, and reduce water
consumption.” This philosophy applies across all P&G Kenya’s brands. “Pampers is another example. Even people on low incomes here understand the importance of using one disposable diaper at night. One Pampers diaper can be used by a baby for 8 hours which means that the baby is not woken up for diaper changes, thus allowing the baby to sleep well which is critical to their cognitive and physical development. If you think about our Always product, you only need one pad for many
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PROCTER & GAMBLE
hours, and the woman or girl is assured that she’s well protected. We are true to our promise to touch and improve lives.” FOLLOWING UP Once a brand has been selected, tailored for the regional market, and launched, P&G continues to work closely with consumers to monitor and evaluate their feedback on the product. “A launch is only the beginning,” says Mr. Sunder. “We constantly strive to ensure we win with our consumers. We work very closely with our hubs in Dubai, Geneva, and Cincinnati, and we’re constantly evaluating and re-evaluating our brands and categories in the markets we operate in.” “For Ariel, we interact with about 1 million mums a year just in Kenya,” says Ms. Mwathi-Miheso. “We go and visit women’s groups and talk to them about washing. We learn how they use our products, and we use it as an opportunity to educate them on the best way to wash, as well as the importance of fabric softeners.” EDUCATIONAL ACTIVITIES AND SOCIAL RESPONSIBILITY Across their brands, P&G Kenya consistently invest in educational activities. “For Pampers, we have an educational program in the 26 | SUSTAINABLE BUSINESS MAGAZINE
hospitals,” explains Ms. Mwathi-Miheso. “In many public hospitals, we have the Pampers Hospital Program where nurses go and educate mothers about vaccination, the importance of breastfeeding, how to take care of their baby, and we also offer them a diaper sample. For Always, we partner with the Ministry of Education to send our nurses into
schools and talk to the girls about puberty, changes to their body, as well as how to use and dispose of sanitary pads. We speak to about 250,000 girls a year for Always, and 350,000 women for Pampers.” P&G started a CSR program called Always Keeping Girls in School. “In 2005, research found that girls were missing four
or five days of school a month because they did not have any sanitary pads,” says Ms. Mwathi-Miheso. “They also didn’t understand changes to their body as they matured throughout puberty. To address this problem we began the program which goes around schools educating girls on puberty as well as providing them with a year’s
supply of sanitary pads. Today the program is making a huge difference in class attendance, girls’ confidence, as well as in their grades.” Through Always Keeping Girls in School, P&G has provided over eight million sanitary pads to 100,000 girls in Kenya. The other flagship CSR program in Kenya is the Children’s Safe Drinking Water
Program (CSDW). CSDW is a not-for-profit initiative which provides safe drinking water to people through a water purifying technology called P&G Purifier of Water. “Safe drinking water is a problem for approximately one billion people. Many of these people are women and young children in the developing world who
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PROCTER & GAMBLE
must walk long distances each day to collect water that is often contaminated,” says Ms. Mwathi-Miheso. “Each sachet can clean about ten liters of dirty water in a few minutes. We distribute these sachets via various partners who educate people on clean water. In Kenya we have cleaned almost a billion liters of water with the help of over 25 sustainability Partners. Globally, the program has cleaned 12 billion liters of water working in 70 countries with over 150 partners.
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Another CSR project P&G is involved with is the Kibera Town Centre, which is in partnership with Human Needs Project. Human Needs Project was co-founded by Connie Nielsen - a Hollywood actress who appeared in films such as Gladiator and Out of Africa. While in Kenya for a shoot, she interacted with people from Kibera which is the biggest slum in Kenya and they requested her help with water. The Centre provides various services at a fee such as showers, toilets, a washing machine, and a
dryer. In the slum, where there’s inadequate space to hang clothes, the Centre provides a welcome and safe solution. The Centre also has a cybercafé where people can check emails, and where they are taught internet skills and basic Word and Excel, at a nominal fee. Each day the Centre receives around 700 visitors from Kibera. P&G also participates in various disaster response efforts, most recently donating P&G Purifier of Water sachets through the Red Cross to help people affected by drought.
ENVIRONMENTAL SUSTAINABILITY Sustainability is a vital part of P&G’s global mission statement. “We want to make sure sustainability is intertwined into everything we do, as opposed to a stand-alone item,” says Mr. Sunder. “We have short term and long term goals, and they get split into business units and countries. We do it across the total supply chain, in the way we produce in our plants, in the way we source our raw materials, in the way we manage the carbon footprint that’s being generated, and of course in the post-use experience as well. We’ve announced that all our factories around the world by 2020 will be zero waste. All the waste they generate will get reused, either back into our own products or to other companies that are going to use it for more meaningful purposes.”
BRIGHT FUTURE “What I’m really proud of is the team that’s doing the work on the ground,” says Mr. Sunder. “We were recently recognized by Global Career Company as East Africa Employer of Choice 2016 at their inaugural awards. At P&G, we believe that the interest of the individual and the company are one. The marriage of these creates a great environment which allows employees to give their best. 90% of our office is staffed with local talent, we have people going out into the local communities every day, and we’re even sending some employees to work elsewhere around the P&G world.” “P&G Kenya remains committed to the communities we operate in. For the Children’s Safe Drinking Water program, we are expanding in the countries where the
program already exists by reaching more people with the life-saving sachet. Our target as a company is to provide 15 billion liters of clean water by 2020.” “We want the vast majority of the population to be using our products. Kenya is forecast to grow five to six per cent this year. If we’re able to grow two or three times that growth rate, we’ll be happy, and if we can deliver that type of growth rate over the next five to ten years, we’ll be a very meaningful business. That doesn’t necessarily require us to invest and introduce dozens of brands because there’s still so much upside potential for our existing brands in this country. We’re excited about how much we can grow, as long as we do a good job of making the products available, affordable, and relevant for our consumers.” c
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POWER & ELECTRICITY WORLD AFRICA 2017
POWER & ELECTRICITY WORLD AFRICA IS THE MEETING PLACE OF AFRICAâ€™S POWER SECTOR.
POWER & ELECTRICITY
WORLD AFRICA For the last 20 years, Power & Electricity World Africa has been the catalyst for innovation in the power and electricity sector across Africa and the 2017 edition was no different.
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Power & Electricity World Africa is the leading marketplace and ideas exchange for African power producers, large energy users, and governments hungry for innovative solutions. The keynote sessions at this year’s Power & Electricity World Africa conference included government ministers and officials as well as leading regional and international utilities from across Africa. Over 640 conference delegates attended the keynote sessions. Power & Electricity World Africa is the meeting place of Africa’s power sector. 38 African countries attended. The conference brings together the brightest and most innovative minds that are shaping the way we generate energy and meet growing demand. Delegates and VIPs flock to the conference to learn about the latest developments, innovations, and investment opportunities which will help them succeed in the energy industry.
The two-day lineup featured incredible speakers from the world’s leading utilities, governments, and investors, hosted over 100 conference sessions, pre-event workshops, and 30 roundtable sessions. With thousands of attendees, hundreds of CEOs and 38 African countries walking the floor, the Power & Electricity World Africa exhibition is the place where global industry leaders gather to share groundbreaking news. Mitsubishi Hitachi Power Systems Africa (Pty) Ltd, ABB, GE, Barloworld Power, Siemens, MTU, Voith, IBM, Mott Macdonald, Solar World Africa, Yingli Solar, Vestas, SMA, Arup, and more, have all leveraged Power & Electricity World Africa as their once-a-year opportunity to meet and do business with new and existing customers. With so many buyers at the event, they understand the importance of networking, which is why they didn’t leave anything to
chance. They made sure everyone left the event having met all the prospects they needed to. To ensure their sponsors and exhibitors met with their key prospects at the event they facilitated hundreds of pre-arranged meetings which took place in their dedicated networking lounge. With 3 floors of meeting space and private meeting rooms, the exhibition was fully utilized across the 2 days, with additional onsite introductions organized by the Networking Team. It is for good reason that Power & Electricity World Africa has been the leading power & electricity show for 21 years. c
Power & Electricity World Africa 2018 27-28 March 2018 Johannesburg, South Africa Visit us at: www.terrapinn.com/powerafrica SUSTAINABLE BUSINESS MAGAZINE
Sustainable Foods Summit 2017 Amsterdam, Netherlands
Food ingredients, social & customer impacts, and marketing best-practices are focal themes of the European edition of the Sustainable Foods Summit. For the ninth consecutive year, the executive summit will be hosted in Amsterdam.
WasteTech Moscow, Russia
WasteTech is a premier forum covering waste treatment, environmental protection, and renewable energy in Russia and neighboring countries. WasteTech creates a unique platform for establishing new contacts, developing business relationships, and expanding business.
6th - 8th
Pollution and Waste Technology Africa Johannesburg, South Africa www.reedexpoafrica.co.za
As a consequence of human impact on our environment we need to explore new solutions for sustainability. Pollution and Waste Technology Africa is the ideal platform to showcase the latest technology, innovations, and solutions for processing, reducing, and managing waste and pollution.
7th - 8th
Responsible Business Summit Europe 2017 London, UK
Europe’s leading business conference focussing on the latest in sustainability, communications, and governance. 2017 is bringing 500+ innovative and inspiring companies in responsible business to London, with a focus on ‘Social Purpose and quantified Impact’
European Biomass Conference & Exhibition Stockholm, Sweden
The EUBCE covers the entire value chain of biomass to conduct business, network, and to present and discuss the latest developments and innovations. The vision is to educate the biomass community and to accelerate growth.
1st - 2nd
6th - 8th
12th - 15th
5th - 7th
ICEECC 2017 Mauritius www.iceecc.org
The International Conference on Energy, Environment, and Climate Change (ICEECC 2017) is a multi-disciplinary, peer-reviewed international conference on sustainable energy and environment.
6th - 9th
ECSEE2017 Brighton, UK
The European Conference on Sustainability, Energy and the Environment 2017. This international and interdisciplinary conference will again bring together a range of academics and practitioners to discuss new directions of research and discovery in sustainability, energy, and the environment.
Oil & Gas Africa Cape Town, South Africa
Cleaner, Cheaper, Faster - is the theme that global energy decision makers are grappling with. Oil & Gas Africa 2017 will give industry professionals the opportunity to learn about new products and technologies, enhance their expert knowledge, and network with their peers.
Power & Energy Rwanda 2017 Kigali City, Rwanda
Power & Energy Africa in Rwanda will provide an international business platform by enabling global investment opportunities into a variety of energy resources especially for renewable energy such as micro-hydro, geothermal, and solar energy.
11th - 13th
12th - 14th
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ADVERTISERS INDEX C Commercial Bank of Africa
G Global Water Solutions Africa (pty) Ltd. P18 J Jainson Cables India PVT. Ltd.
M MediaCom East-Africa
S Sofidel Group Stanbic Bank T Tamps Ventures Ltd.
Back Cover P09
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