Issuu

2021 / Issue 4

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Mercury

Redefining the built environment

Optos

Eye on Supply Chain

Adisseo

Supply Chain Health

Eaton

Transform Your Data Centre

Anord Mardix Boosting Global Digital Infrastructure

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Development

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Welcome Mercury is an Irish Head Quartered Leading European Contractor that builds and manages complex engineering projects that reimagine how people work and live in the built environment. During the challenging times of the covid pandemic the Mercury team consisting of over 2’600 employees spread across 10 European countries has shown its agility and versatility to push the business to new heights. Johnny McFadden heads the procurement function and talks about the journey to creating a robust, flexible, and smart supply chain. Sticking with ‘smart’, Anord Mardix CEO James Peacock provides content on their role in boosting global digital infrastructure. Mike Archenhold VP of Supply Chain at leaders in retinal imaging Optos opens up on managing a global supply chain during a pandemic and the lessons learned. Bosch recognise suppliers who contribute positively to their sustainability goals, whilst Siemens Gamesa outline their new sustainability strategy. Eaton EMEA Data Centre Segment Leader Ciarán Forde talks about Eaton’s capabilities to transform your data centre, Volocopter and DB Schenker announce details of the Volodrone plus much more. So please read on and enjoy! The Business Profile Team

Leadership

6 Sustainability

Procurement & Supply Chain

30 Technology

Infrastructure

Leadership

Mercury

Leadership - MERCURY

Mercury – Procurement

ercury is a leading European Contractor that builds and manages complex engineering projects that reimagine how people work and live in the built environment. Their determination and focus enable the delivery of leading-edge construction solutions across a range of key sectors including Enterprise Data Centres, Advanced Technology & Life Sciences, Hyperscale Data Centres, Fire Protection, Technical Support Services (TSS), Data Centre Facility Management, Healthcare & Building Services. Mercury employs over 2,600 people across over 10 locations in Europe and had an overall turnover of €1bn in 2020. Mercury employs the best people, invests heavily in training and education, and ensures that the highest standards of health, safety and governance are applied throughout the organisation. Johnny McFadden joined Mercury as Group Head of Procurement in 2018. A life-long career within the construction sector has seen Johnny cut his teeth from regular residential building sites to Oil & Gas mega projects across Europe, Middle East, Africa, and North America. Mercury’s continued rise created a need for a redefining of structure. Johnny and his procurement team have

made significant steps over the past three years and he kindly offers an insight into the ongoing evolution of the function as well as providing his own outlook on procurement in general. Johnny, what does your role as Group Head of Procurement cover? Primarily, I was recruited to put a supply chain structure in place that is robust, flexible, and smart. We are a support function that endeavours to keep Mercury projects running smoothly, which can be very demanding as construction projects are often pressurised situations. Added to this is the complex nature of executing projects across Europe. In Mercury, the procurement department are responsible for purchasing of Goods/ Equipment, Material Control and Fleet, Tool and Plant requirements. This can only be done in conjunction with our Commercial and Operations teams. Initially, we updated and released new processes and procedures in Q3 2018, which was very important in order to lay down solid procurement foundations. These were very different to what had preceded, so the change management was considerable and is ongoing. Once created, documents should be dynamic and change as the

The Business Profile

Rising

Leadership should be dynamic and change as the company changes and matures. In many ways, they were probably overzealous, which I trace back to my experience in the more stringent Oil & Gas industry. Working with the leaders in Mercury, I think we are finding the right balance between compliance and flexibility in the construction sector in order to execute accelerated projects. You joined the business in 2018 and set about redefining the procurement function and aligning its structure to mirror that of the business. What was involved in this process? How did you overcome initial resistance? What instant benefits did this structural change create? When I joined Mercury, it was already in a phase of restructuring from a business unit model to a divisional model, of which there were four, with each division having a Managing, Operation, and Commercial Director respectively. The divisions, though similar in many ways, had distinct differences, which procurement had

to be able to support and to which we had to provide specifically dedicated personnel. This was based on moving from a centralised procurement model to giving each division a dedicated divisional procurement manager who would support the procurement changes I wished to roll out. This was primarily based on getting procurement personnel closer to the projects and having buyers on site so that they were closer to being part of the project team. This is where I personally felt I learned the most at the outset of my career, gaining site experience and understanding the pressures and constraints of live projects.

The Business Profile

Leadership

Anord Mardix and Their Role in Boosting Global Digital Infrastructure

The increase in digital demand has been critical over the last 12 months. The power of digital infrastructure has enabled the world to continue, but have you ever asked yourself how critical power is manufactured and delivered? COVID-19 has been the catalyst for a lot of digital change and transformations over the last 12 months. Operational barriers were pushed to the extreme to make way for reactive digital change; adopting new technologies that have had to transcend the traditional ways of working we’d

become accustomed to.. Mobile phones, tablets, laptops and a myriad of devices have become the core infrastructure to business, enabling us to host meetings virtually, attend networking events from afar and have conversations with colleagues, all without being physically present. But with rapid growth in online communications, how did the industry keep up with demand? The answer in a nutshell: critical power and data infrastructure. The Criticality of Power

Premier Sponsor Feature Critical power solutions provide businesses with uninterruptible power and critical data infrastructure to ensure commercial operations run seamlessly. As a society, being quick isn’t good enough, downtime can create tremendous operational losses for businesses. Anord Mardix specialises in the design, production and installation of critical power. Throughout the last 12 months, demand has sky rocketed for Anord Mardix as they continue to underpin the growth of digital infrastructure, ensuring the world can continue to turn in such unprecedented times. Re-Defining Critical Power Infrastructure With data centres fast becoming the foundation of digital infrastructure, Anord Mardix’s modular critical power solutions have really come into their own. As the industry continues to grow from strength to strength, so has the popularity in modular designed solutions. Delivering solutions across EMEA whether it be Power Pods or SKID mounted power solutions, the demand and reach continues to grow from northern Scandinavia through to Southern Africa. In the world we live in today everything we

see feel and touch is ultimately translatable into a digital footprint. Something as simple as posting a photo online now relies more and more on the cloud, storing data, moving data, protecting data. With data centre growth set to continue, Anord Mardix’s impressive and global client base has near doubled over the last 2 years as organizations demand more data retail space. Anord Mardix, explains they’re currently working on multiple hyperscale projects across two of their facilities in Lancashire to provide a data centre spanning the equivalent of seventeen football pitches! Overcoming Challenges Through Innovation Unlike many businesses the demand in the data centre sector remained strong throughout 2020, and as a result the company had to work out how to maintain output in a number of ways. First, in terms of sourcing raw materials despite the disruption to global supply chains and, secondly, continuing production while remaining within the various rules on social

Leadership distancing. Both, in many respects, were challenging tests of management that the company not only passed, but exceeded in. However, for many customers, processes will have changed, and Anord Mardix had to change with them. Pre-pandemic, clients would visit the company’s facilities prior to the products leaving the factory. “If we’re building a hyperscale modular data centre our clients need to see it working and test it.” Says James Peacock, CEO at Anord Mardix. “We want to showcase our products functioning as they would onsite; testing our product in real time gives our clients the confidence that, when it leaves the factory, it’s as close to plug-and-play as possible. We’ve been reactive and effectively adapted to our client’s needs, that’s comprehensive engineering excellence.” This of course had to go virtual throughout 2020, and still is for many clients. “We introduced a lot of new technologies and processes over the past year so that, now, customers can do virtual factory tests. This means that clients can still have the full purchasing experience despite travel restrictions; they get to see their products in action and get a feel for the quality and product specifications they asked for”. Looking ahead to the future Whilst Anord Mardix as a business have adapted to the COVID challenges, maintaining client relations and utilising their technological advances, the demand on globally scaling will certainly present its own challenges. “We recognise that with such global acceleration, we must continually seek sustainable ways of working to

ensure we’re not only supporting critical infrastructure, but also the criticality of carbon reduction and sustainable sourcing.” “We’re working with our hyperscale clients towards a net-zero carbon strategy to achieve carbon neutral practices, not only within our realm of control, but to lead the way within our full supply chain process. Sometimes it’s the smallest changes that make such a difference when applied at a hyperscale so we’re driving an all-encompassing strategy.” Anord Mardix have already led the way in their field by reviewing the logistical process around shipping their modular data centres, pioneering new practices to reduce operational waste. “Our competitors are still building SKID based modular designs traditionally, delivering them under tarpaulins that require a large support frame. We’ve

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ANORD MARDIX MODULAR FACT FILE now developed a process where we use recyclable shrink wrap to encapsulate the individual modules before shipping without the use of the unnecessary frame, reducing the carbon footprint by half as we demolish the need for return shipping.” Ultimately, the growth in global dependency on data, data storage, and therefore Data Centre construction, has catapulted Anord Mardix into a spiral of growth – but it hasn’t been a journey without its challenges. Anord Mardix’s ability to think globally whilst remaining agile to respond to localized change has been crucial to the business’s compounding success. As the company looks to the future, their sights are set firmly on continuing with the quality product and services that their clients have become accustomed to - all whilst driving true sustainable change to their internal infrastructure and external business decisions.

Anord Mardix have dived deep into the data centre industry since merging in 2017. With over 100 years of combined critical power manufacturing experience, they’ve curated a global workforce of industry elite, enabling them to focus on modular builds that bring a multitude of benefits to clients. The 14m x 7m SKID mounted modular units are designed with the ‘plug and play’ concept that most construction companies dream of. Built offsite at the Anord Mardix hyperscale fabrication facility, these all-encompassing, self-contained Power SKIDs save up to 70% in onsite deployment, a monumental 84% saving in installation due to the build process taking place offsite, as well as up to 65% in lifting operations.

Leadership - MERCURY This is still very much a work in progress with the change management and the acceptance of what changes the new procurement management team want to bring. There are different views on what supply-chain is within the organization, given the long-held views on the methods by which the construction industry have historically procured and built in the past. We laid out some fundamentals in engaging in commercial negotiations with vendors directly, who can then make commercial commitments on behalf of the company, endeavouring to reduce the amount of maverick buying on projects. There are many stakeholders involved in the procurement process in any industry and so we are

working toward finding the right balance. The executive management team have been supportive and recognize that the required changes don’t happen overnight. There are elements you wish would change quicker, however resistance to change means you have not won over or perhaps targeted the right stakeholders. Conversely though it is those elements you expect to be a lot trickier to get buy-in which actually sail through. Creating a diverse and inclusive function was high on your priorities with the majority of your team now being female. Did your previous experiences working within a large multinational drive your

The Business Profile

2020 saw the 100th anniversary of the Niedax Group as one of the world’s leading cable management systems manufacturers. Despite the pandemic and all planned celebrations & events being cancelled, it proved to be another very successful year. Niedax was facing new challenges, which they mastered with “anticyclic” decisions, and this ensured 2,500 jobs were secured, success continued, which led to new company acquisitions being made and the Group growing further. In 2009, one of these typical “anticyclic” decisions for Niedax, was the starting point for the Irish subsidiary. During the recession, Niedax took a risk in starting up Niedax CMS in Tralee, Co. Kerry. What started as a small operation has developed into a formidable force not only on the Irish construction market, but also in the UK, continental Europe and further afield. The venture paid off! Niedax CMS not only distributes cable management products, but also assembles & manufactures to service Irish & UK electrical engineering companies. While Niedax CMS has grown with their partners it is still relatively small in comparison, which we believe is the key to our success. Each client gets a very personal service with flexibility, agility, and quick ADAPTATION to any challenges that might come their way. Mercury Engineering is one of our main key accounts for the past 10 years. We are proud to be their partner on projects all over Europe from the Swiss Alps to as far as the artic circle. Together we strive to continue & strengthen this relationship into the future. 17

Leadership - MERCURY

Riwal Kazakhstan

DEPOTS

Your Partner in International Projects Riwal International Rental T: +31 (0)88 618 18 18 - E: international_rental@riwal.com

Above all. Riwal riwal.com

The Business Profile

desire to create a more diverse culture or was this a personal point of preference? How beneficial has adding a younger dynamic to your team been? I do like to have diversity in my team, it makes life more interesting and the right dynamic of inclusion makes for a stronger team. This would primarily come from my time working in very diverse teams in the Middle East, Africa and Canada. It has happened organically in Mercury as I inherited some very strong personnel both male and female. Then as the new roles came up, we just seemed to find some very strong female candidates. The goal is always to find the best fit for the candidate and the team. Now we have a strong balance with

Irish, British, Mexican, Italian, Brazilian, Romanian, Indian, German and Polish nationals working together in our Mercury procurement team from junior to senior levels, female and male. The nature of the Construction business is evolving fast, and Mercury is changing accordingly. The Mercury mantra is to be brave and lead the way in all that we do. We are focused on creating diverse teams for a multitude of reasons. We want female leaders in our team, and we want to be able to converse easily in native languages and promote not only our company, but the industry. Changing the perception of how construction is viewed by younger

Your Partner in International Projects Operating successfully across borders demands a high level of knowledge and experience. It calls for strong project management, technical skills, and cost transparency. Conducting business across borders also requires good cooperation, which is why you choose your partners selectively. You need partners capable of adapting to the way you work and who are willing to go the extra mile for you. Riwal International Rental is that partner. Challenges like language barriers, local regulations and business environments are a part of operating across borders. When working with Riwal International Rental you will be assisted with all of these challenges. From our headquarters in the Netherlands, our experts arrange machinery for entire projects. The machines are supplied through our Riwal depots in the Riwal countries, our network of suppliers and our own International Rental niche fleet. With Riwal as your partner, you will have only one point of contact during your project, which ensures you have the equipment and support you need to get your job done.

Working With You to Achieve Your Goals Riwal has an extensive international network with a fleet of over 20.000 machines, that are spread across depots in 16 countries. Also, we are conducting business in over 70 countries worldwide. Because we are organised as one company, we are able to deliver the best customer experience wherever you are. Additionally, we provide centralised invoicing as well as a global damage protection plan. These elements combined provide you with peace of mind, knowing that with Riwal, conducting business is always simple and easy.

Leadership - MERCURY generations is vitally important to attracting the best talent. We have hired some younger personnel who are so keen to learn, which drives us all forward to better define what is expected and map out career paths that keep them interested is very important. My belief is that to get the best out of procurement personnel, they need to be on site to appreciate the urgency. This helps a buyer become part of the execution team which is important for them and the function. Smaller projects absolutely still require the centralised office support, but on the scale of projects Mercury were now executing it made sense to have site buyers and material control personnel. This is starting to pay dividends and build the trust

that is required to buy into the supply chain method we are trying to deploy. What are the primary challenges of overseeing a procurement function of a projects driven business operating across Europe? There are so many factors that can impact projects and the function on any given day. Especially now in the clutches of a pandemic and Brexit which complicates everything further. There are the external factors as stated previously around how aggressive schedules are now for projects. We would have faced struggles with language barriers in certain countries, which means that getting through the

The Business Profile

bureaucracy can be difficult sometimes. That has been alleviated somewhat by having so many different language speakers in our procurement and construction team. Dealing with the urgent requirements on projects present difficulties, as well as getting the balance between forward planning and a flexible supply-chain. Given that lead times of most materials because of commodity disruptions (copper, steel, rubber and plastic) have been stretched to a critical point, places additional pressure on everyone. Supply-chain has a major part to play in Mercury navigating through the next few quarters especially. The shortages in

the market mean that due diligence and relationships with suppliers becomes critical to delivering successful projects. As such we need to create an environment where projects are not siloed, for their own benefit and Mercury. Our purchasing personnel are dynamic with a focus not solely on purchasing, but also the expediting and logistics. With the direction we are heading the skills and knowledge required for the movement of goods is increasing rapidly. Our aim is to have a department that is flexible and innovative to all the supplychain needs. You operate in an innovative sector. How important are strategic supplier

Prefabricated Power Supply Modules are the solution to a faster project delivery The global demand for data center (DC) capacity is increasing almost daily. At the same time, the demand for power and infrastructure in the prominent global DC locations is fast approaching full capacity. This poses huge challenges for investors and data center builders. The question now is how DC constructors can achieve their growth plans in regard to the power and infrastructure limitations in these locations. Rapid deployment in the construction of the DC is fast becoming a competitive edge. Simplified construction synergies can reduce the overall risks on DC delivery. The traditional construction of a DC requires more than 800 skilled workers on site at peak times – The challenge is how can covid restrictions be adhered to without jeopardizing the schedule? Prefabricated power supply modules from Siemens can simplify project synergies, improve project time lines, reduce the number of installation and commissioning specialists required on site. If Siemens expertise is engaged during the projects conception, then potentially - additional savings and technical innovation via value added engineering can be achieved. Prefabricated modules are aligned with customer needs, i.e; 100% custom designed, off-site manufactured and fully pre-tested. Prefabrication not only shortens installation times and thus the overall project duration by up to 50% on site, but it also reduces investment costs by up to 20%. For more information, please visit: siemens.com/datacenter-tip 21

Leadership - MERCURY relations in driving innovation? Are there processes in place to involve suppliers at the onset of projects? How have supplier relationships developed since you joined the business? Would you say that the success of a project and the potential to win further contracts is often dependent on the level of cooperation with a given supplier? Yes, it is a very innovative sector with a lot of smart people working on next generation methods of construction (i.e. 4D modelling or virtual site walks/ inspections) to meet the schedule demands. I would attribute a lot of the success to the performance of our subcontractors and suppliers on projects. The repeat business comes from Mercury and our supply-chain collaborating well together and successfully delivering projects for our clients. Projects are holistic and the sum of all parts, and construction is tough and fast paced. There are always issues on projects and equally for supply chain, but it is how a company deals with a problem that is the true acid test. Thankfully we have good partners who, like Mercury will always own up to mistakes and ensure that we find solutions. Quite often, it can come down to a specific project team, or a specific country where a company who has otherwise performed well can struggle. We continue to try to develop and take heed from lessons learned. This is easy to write, but more difficult to put into practice with the pace and nature of projects these days. As well as Mercury leading the way in data centre construction, Mercury enjoy

continued success in the life sciences and pharma industries along with our fire protection and new TSS division. None of which would be possible without Subcontractors, suppliers and partners who can support our aspirations to deliver best in class projects. The schedule pressures are getting more and more compressed as the demand for data increases. The procurement function has a significant role to play in driving the sustainability ambitions of a business. Your clients demand for sustainability to be positioned at the heart of their projects is becoming paramount. As a business you are aware of the need to stimulate sustainability within the supply chain. What steps are your taking at present? Sustainability is such a broad topic covering everything from diversity to the environment and how we treat the planet and other human beings. Whether it is looking at environmental product declarations for carbon emission calculations or diversity in the workforce, procurement will be at the forefront working with our supply chain to bring the new changes about. There are so many different new initiatives that we have got to be pragmatic about setting the priorities and the approach. Mercury focused on what pillars mattered most to our personnel, communities, clients, and suppliers. We set up a committee of which I am part to lead sustainability in the group. We have recently conducted a sustainability survey with our supply chain which returned an excellent 60% response

The Business Profile

rate. Based on that, we will get some key actions for the future. But the carbon footprint is vitally important to us all so that is getting a lot of focus and support from the business. It is important for me to do the right thing as an individual because then I can speak to my team who can influence others in Mercury so that we truly live the Mercury Mantra of “Our Planet, Our Duty”. It’s fair to say that since 2018 your function has progressed significantly and has embedded itself as a key partner to stakeholders throughout the business. If you could point to one reason that your plans have come to fruition, what would it be? I believe there are 2 keys reasons for this. Firstly, the department has progressed enormously, and a considerable amount of that progress is down to the hard work of the divisional procurement managers and

their teams. They work on a daily basis with our commercial and construction teams to bring good solutions. Having a consistent and simple message is important and I had probably over complicated certain elements when I first came in. I think when I initially introduced the full procedure suite of documents it was too much too soon. Secondly, changing the focus to working with the divisional directors to simplify and collaborate more on the direction they need procurement to go is proving far more beneficial to all concerned. There is still frustration and arguments on both sides, but it is a lot healthier and more proactive in nature. We all want what is best for Mercury and it is important not to lose sight of that when evaluating conflict situations. The last twelve months have been the most turbulent in recent times. What

Leadership - MERCURY have you learnt about your function during this time and how have you adapted? It has been an incredibly uncertain and difficult time for all concerned. All Mercury personnel working on projects never stopped and have been working through incredibly difficult and unprecedented times. Those working in Europe had to leave their families for months at a time to ensure that projects meet the ever-present aggressive schedules. Between Covid and Brexit many of the impacts have pushed procurement to be constantly on alert and providing solutions to problems that never existed on projects in Europe before. What I have learned is that our people are so resilient and very dedicated, which in a working from home scenario for many is very difficult. The procurement personnel have

brought many smart solutions throughout the pandemic. The human impact to a lot of what the last year has brought is humbling. We all share the same frustrations with the limitations placed on our lives. We just have to look out for one another as some deal better with stresses than others. The trust in systems and technologies to work remotely has increased dramatically which I think stands us in good stead for the future.

The Business Profile

JOHNNY MCFADDEN

IN HIS OWN WORDS My early career was working on construction jobs as a labourer in the summers. This led me into carpentry progressing on to leading crews on residential and commercial projects. I worked in Dublin, Melbourne, Chicago and New York over a period of 10 years, which certainly gives me an understanding of what site life is like. I then took up a position with Kentz Engineering in Saudi Arabia in 2007, thanks to my older brother Alan – though I was not thanking him at the time! To say it was a culture shock, and an extremely challenging baptism of fire is an understatement. Expat life and working on Oil and Gas projects is not for everyone, I did grow to enjoy it. Working with people who are by proxy the same people you socialise with, may seem claustrophobic, but this was not the case for me. There were strong bonds that made people vested in teaching you all they know. Since there were no clubs, pubs or cinema you tended to work a lot, so the learning process was accelerated, and I really enjoyed it. I had excellent mentors who gave me the foundations to build a career in procurement, and more so the opportunity to do so. Over the next 10 years I worked all over the Middle East, Africa and North America progressing through the various procurement management levels from Project – Divisional – Country – Regional (Continent). I gained experience in every aspect of supply chain, from site set up, to procuring the most expensive stainless-steel vessels or equipment upon which the project critical path schedule depended. I enjoyed the pressure and the interaction with all the different stakeholders. In 2017 we moved back to Germany for a year working with Brand Industrial Solutions before making the move to Mercury Engineering and the current role I occupy. It was an offer with a company I could not turn down, and the opportunity to live back in Ireland now that I have a family was an important element for sure.

Leadership

Eaton: Enabling the transition of power

any businesses like talking about sustainability these days - but intelligent power management company Eaton believes it’s time to start acting. Eaton is already committed to ambitious sustainability goals for the next decade, including halving its carbon emissions and achieving zero waste-to-landfill status at all its manufacturing sites. It’s also allocated $3 billion over the next 10 years to develop more sustainable and energy-efficient technologies and services. As a multi-billion-dollar business with customers in more than 175 countries, Eaton is striving to help the world solve urgent and complex power challenges. From factories and warehouses, to homes and hospitals, the company is dedicated to improving peoples’ lives and the environment with power management technologies that are more reliable, efficient and safe. Tim Darkes, president, Corporate and Electrical Sector, EMEA, reveals how Eaton is leveraging its industry leadership and technical expertise to drive lasting sustainability.

Tim, what does sustainability mean for Eaton? Sustainability lies at the heart of our mission to improve quality of life and the environment. As our world is challenged by climate change, population growth and more, our power management portfolio can help build a sustainable future. We’re empowering our customers to drive long-term sustainability by creating a positive environmental impact with our products and services. In 2020, 47% of our revenue came from products that meet rigorous positive-impact criteria. However, our commitment to sustainability means we don’t just measure the success of our company by financial results alone. We believe we have a broader

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responsibility to society than our bottomline; a responsibility to protect our planet and the well-being of all the people on it. As such, we also define success through our environmental stewardship, social responsibility and strong governance. That’s why we’re also striving to lessen the footprint of our own operations, to engage all our employees in an inclusive environment, to give back to our local communities, and to do business right everywhere we do business. All of these facets make up our sustainability vision. How is sustainability changing Eaton’s approach to market? Right now, we’re going through the most significant transformation in our 110-

year history. We’re rapidly transforming our portfolio of power management technologies and services to support the accelerating transition to a more sustainable, low-carbon future. Driven by renewables replacing fossil fuels, clean air regulation, and widespread electrification of different industries, this energy transition is creating huge complexity as well as enormous opportunities. The power delivery model we all know is being upended. Electricity will no longer flow in one direction from centralized power plants to end users. Instead, people will produce their own energy locally, use or store what’s needed and, in many cases, resell excess power back to the grid. Distributed renewable power generation and storage, two-way electricity flows across the grid, and the electrification of everything from cars and buildings to heavy industry, all demands smarter, more flexible power networks than ever before. We’ve put enabling this energy transition at the heart of everything we do because we believe it’s vital to creating a more sustainable future for each other and our planet. It holds the key to addressing both climate change and pollution, as well as to enabling more reliable, efficient and affordable power. What is Eaton’s strategy to support the energy transition? Our approach to reinventing the way power is distributed, stored and consumed is called ‘Everything as a Grid’. Our core capabilities in electrical and mechanical power management mean we’re well27

Leadership placed to help customers across a wide range of industries navigate the transition to a low-carbon future. We’re helping our customers understand the challenges and opportunities in the new energy value chain, enabling them to embrace electrification and to integrate renewables effectively. We’re also applying our expertise in microgrids, digitalization, energy storage, and power management to help build a grid that’s more intelligent, adaptable and stable. While decentralized renewable power brings complexity, it also creates exciting potential - future where homeowners can use vehicle batteries for backup power during blackouts, where data centers operate using renewable energy stored on-site, and where manufacturers lower running costs by selling electricity back to the grid. Can you give some examples of how Eaton is accelerating this transformation? Buildings Through our Buildings as a Grid approach, we’re helping commercial and industrial building owners transform their properties into energy hubs by making it easier to

The Catholic University of Lille

French postal service La Poste

integrate renewables, energy storage and electric vehicle (EV) charging infrastructure. This allows them to optimize energy costs, lower carbon emissions, and enhance power resilience, while also capitalizing on new revenue streams from EV charging or the sale of energy back into the grid. The energy storage system we deployed for the Catholic University of Lille, France, is a great example - accelerating its journey towards becoming a zero carbon campus by enabling solar power to be harnessed much more effectively. Our 250 kWh system stores power from the university’s 1,300 m2 photovoltaic panels, enabling it to be consumed on demand - even when the sun is no longer shining. By integrating charging infrastructure into buildings, we’re also supporting the rapid move to EVs during the energy transition enabling charging to be both more widely available and dominated by local green power generation. For instance, as part of a trial project we recently helped La Poste, the well-known French postal service company, meet up to 80% of the electricity demands of its EVs by integrating solar panels with our energy storage solutions and smart charging capabilities.

Advertisement Feature Data Centers We’re also enabling the data center industry to capitalize on the energy transition. Data centers are expected to account for over 3% of the EU’s energy consumption by 2030, so helping these facilities meet more of their power requirements from renewables is crucial to a low-carbon future. Uptime and reliability are critical for these facilities, so uninterruptible power supplies (UPS) are already a prerequisite for doing business. For instance, Dutch hosting provider Worldstream relies on our UPSs to ensure continuity, scalability and energy-efficient operations. However, energy storage can also enable data centers to capitalize on renewables that would otherwise be too unreliable to power their operations. Our EnergyAware UPS solution can go even further - turning a necessary investment into a revenue stream. It effectively monetizes a data center’s ‘sleeping’ assets by enabling power to be sold back into the grid. The solution is already in use at our corporate headquarters in Dublin, Ireland.

more sustainable power infrastructure. For instance, most switchgear today uses SF6 as an insulator - a potent greenhouse gas with a global warming potential 23,500 times higher than CO2. We manufacture SF6-free switchgear that eliminates the risk of this gas escaping into the atmosphere. Most recently, we supplied Bane NOR, the company responsible for Norwegian railway infrastructure, with our SF6-free Xiria switchgear for the newly completed Ulriken tunnel.

Utilities Our approach to grid modernization is also helping utilities build more resilient, efficient, sustainable and secure power networks ready for the energy transition. We’re harnessing digital technologies connected devices, data models, insights and analytics - to let utilities anticipate consumers’ real-time energy requirements and to enable the flexibility to integrate an ever-larger share of renewable generation. We’re also seizing opportunities to rollout

All these examples only scratch the surface of the change that’s coming. From air conditioning to zero-emission vehicles, power now affects every area of our lives - and so will the accelerating energy transition. The potential for flexible, intelligent power is limitless. The value for our customers is enormous. And we’re proud to be taking the challenges of the energy transition head-on to help the world seize these new opportunities.

Ulriken tunnel. Photo credit: Bane Nor/Eivind Larsen

Procureme Supply Ch Adisseo | Optos

ment & hain

Procurement & Supply Chain

Adisseo Developing robust supply chains

The Business Profile

disseo is a world leader in feed additives solutions with a mission to contribute to feed the planet in a safe, affordable, qualitative, and sustainable way. The group relies on its 10 research centres and its production sites based in Europe, USA, China and Thailand to design, produce and market a wide range of products, including Methionine, Vitamins, Enzymes, Probiotics, aqua and other “Health by Nutrition” products. With more than 2,345 employees, Adisseo serves around 3,900 customers in over 110 different countries through its global distribution network. In 2020, Adisseo achieved a turnover of over 1.51

billion Euros. Adisseo is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with nearly 20,800 employees and a turnover of 7,5 billion euros. Approaching two decades of service, Adisseo’s Executive Vice President Cost Competitiveness Marc Proto discusses the company’s responsible purchasing push. Executive Vice President Cost Competitiveness is not the most common of job titles. What is your remit and how did you arrive to becoming responsible for both procurement and cost saving from a background in chemical engineering?

Procurement & Supply Chain I spent the first part of my career in production across different chemical plants for what is now known as Arkema, before joining Adisseo in 2002. After a few more years in production, I took over a competitivity plan for the plant which was at the time in a challenging economic situation. After making a success of the project I joined the Purchasing Department taking charge of packaging, raw materials, and later Energy.

In 2018 I took charge of the entire purchasing department. Adisseo launched Eagle, its global efficiency program in 2019. My industrial past and the focus on costs developed as a purchasing executive were good assets to lead that program. In 2019 you re-designed the supply chain function as part of the cost saving

Marc Proto

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program you were implementing. This is an evolving task but what initial steps did you take? Where did you find the quick wins? What is the current focus of the program? Our first step was to define and model our entire distribution system with specific software to optimize the location of our distribution centres around the world. This instantly created mass distribution efficiencies. Then we switched most of our maritime transportation from iso tanks to parcel tankers. Trucks were also replaced by train transportation wherever possible, showing that cheaper can be compatible with greener. Adisseo is conscious of its social and environmental impact. Procurement has a big part to play in driving these fundamentals. Two years ago, you started your journey to embed responsible procurement into your everyday processes. What has this

process involved so far? Was it well received both internally and externally? What would you point to as the primary successes so far? After a training of all our lead buyers, we started our journey toward responsible purchasing by the risk prevention approach. Each category manager established his or her own grid to cover as closely as possible the identified risks most relevant to his or her portfolio. Following that mapping, we established a self-assessment and an audit grid to drive deeper the evaluation for the suppliers identified in the first step as potentially more at risk than others. After 2 years of practice, we asked AFNOR to help us evaluate our maturity with a selfevaluation against the ISO 20400 norm. All lead buyers participated to this deep dive into the norm requirement. We have now created a Responsible Purchasing Committee in charge of deciding actions plans to push further the virtuous circle. With a plant in Spain operating 100% from solar energy, China using nuclear 35

Procurement & Supply Chain and France being carbon free Adisseo can show that it is serious about its environmental impact. Many of your successes have come from internal developments and desires. For responsible procurement to create long term sustainability benefits the need to develop collaborative or strategic alliances with suppliers will be imperative? Have you been able to have open conversations with suppliers on this topic? Does procuring commodities sometimes limit the potential to create collaboration in such areas? Indeed, the commodities market is very much price driven, and given the amounts of money involved, it is understandable. Yet it is possible to make some differences, by using more environmentally friendly transportation means, by developing location swaps to reduce emissions, by using best in class trucks or RTCs, and sometimes just by showing to your suppliers that you care, which pushes them into the right direction.

Sometimes it is also possible to make strategic moves such as the one we managed in Spain by signing a green PPA granting us 10 years of green electricity supply at excellent prices. We must also notice that even for commodities, the market is moving. No one month goes by without an announcement of a new green ammonia or green methanol project. If prices for such products are still staggeringly high now, the development of the offer will certainly open possibilities. What are the main challenges your function faces on your responsible procurement journey? The first point would be the extra administrative workload brought upon already well busy teams. Risks analysis, scope 3 analysis, audits and selfassessments all take time. The second one would be the varying degree of awareness from our internal customers,

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who, in the end, are going to validate the final choices. Third, I would also mention the varying degree of maturity of our different suppliers. It can be very difficult to get precise answers and data, especially in certain type of purchasing Covid-19 has put huge pressures on many supply chains. What challenges has the covid pandemic created for your procurement function and have you been able to adapt to these challenges? 2020 has been difficult because many suppliers were afraid of supply disruptions… which in the end did not happen. We had some periods of tension, mainly due to the constitution of precaution inventories, and with some fears of direct effects of the pandemic on the production lines, but in the end, most suppliers managed to get by. 2021 is an entirely different matter. Shortages of by-products, not produced in

any significant volume due to slow running refineries, shortage of maritime space, with freight companies caught off-guard by the vivacity of the demand rebound, climate induced disruptions in the US with ripples all over the world, all parameters seem to be aligned to make sure that the disruptions so much feared in 2020 actually happen in 2021 What is the biggest lesson you have learnt about your business and function in the last twelve months? Covid-19 has emphasised the need to have robust supply chains to be resilient in times of crisis. This cannot be achieved over a few weeks, especially when everyone is doing the same thing at the same time, tapping on the same resources. It has to be prepared through pertinent and thorough risk analysis. This is the keystone of sustainable purchasing.

Procurement & Supply Chain

Optos Keeping an Eye on Supp

hen a five-year-old boy was blinded after a regular eye exam failed to spot a retinal detachment, his father made it his life’s work to help eye care professionals by revolutionising retinal imaging. Optos was founded by Douglas Anderson with the goal to make a patientfriendly device to capture a digital ultrawidefield image of the retina. Today, millions of patients around the world have benefited from optomap® retinal imaging. You will find optomap systems in many independent High Street optometrists, as well as eye clinics at Great Ormond Street Hospital in London and Harvard Medical Center in Massachusetts. An inspirational beginning for a business head quartered in Dunfermline, Scotland which has grown from a one-man mission to a global leader in its field. Like most businesses the events of the past 18 months have caused significant disruption. Mike Archenhold Optos VP of Supply Chain talks us through the impact the business has experienced and why having an agile supply chain function has made the journey a little smoother.

The supply chain function is dynamic. It can be highly focused on a certain area of business, or it can cover the

broad spectrum of services. As VP of Supply Chain, what are your primary responsibilities and how is the function structured? My role as VP of Supply Chain addresses a broad spectrum, starting with supplier selection and contracting, supplier management and development and procurement through to production planning, warehousing and logistics and ending at inventory management ensuring product availability for our sales and service functions. I have a dedicated team of 25 split across both locations (UK & USA) that manage these functions and processes for the organisation globally. Because of the technical nature of the products we manufacture, there is a significant collaboration with other departments, in particular R&D, engineering and quality. We are involved in most of the business projects and influential to many of the corporate objectives. As a career supply chain executive with significant electronics experience, you joined Optos in 2015 with the remit of developing a global supply chain function. What was your initial plan for the function and how smoothly were you able to implement the necessary changes?

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pply Chain Optos California rg

Procurement & Supply Chain I joined Optos in Feb 2015 just ahead of the launch of the California product which was the next development after the hugely successful Daytona product range a few years earlier. The supply chain function was immature in its position within the organisation and had gone through several leadership changes. My initial brief was to provide stability and develop the organisation so it provided the value necessary for a growing company, which was planning further new products to add to the

Mike Archenhold

Optos portfolio. We needed to provide the commercial support and structure to aid the engineering group through the technology roadmap and to ensure Inventory stability to support the sales organisation. Overriding this was the need for a strategic road map and a mission statement that ensured we would be viewed within the organisation as ‘a valued partner, working collaboratively to drive supply chain solutions that delight our customers and deliver our corporate goals’. The mission statement is as relevant today as it was back then. Thinking back on the 6 ½ years in the post, it is easy to forget how far we have progressed and how different we operate now to back in 2015. Some of the early initiatives proved hugely important. We conducted a detailed review of our key supply chain partners. By doing this we were able to focus on ensuring that we were developing partners that were a good fit for Optos or putting in plans to make changes where the fit was not appropriate. We worked hard in the early years to develop strategic supplier relationships where historically these had been mostly engaged at a tactical level. We established regular business reviews to ensure we were aligned on requirements in both the short and longer term. This helped our partners planning and was instrumental in driving improved service levels as well as supporting our cost goals. We created a purchase agreement template to further strengthen the commercial relationship and provide a contractual umbrella for both

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Optos and our suppliers. We introduced an Inventory policy which provided guidance on stocking levels which has hugely improved our availability of materials and finished goods to provide the necessary support to our sales and service functions and our manufacturing sites. Of all the challenges that face an organisation, supply chain surety and risk mitigation is one of the key areas that needs significant attention. Understanding the risk is key. Whether it is single source, or a financial concern, a technology miss match, a future capacity concern, or the wrong fit, a solution is required, or at least a plan that the business can buy into. The last 18 months took risk management to a different level. The business has been impacted during these months of the pandemic and the supply chain function was one area

that mitigated the effect. What initial challenges did the pandemic cause the business and supply chain function? The impact of Coronavirus was seen at Optos well ahead of the realisation that the world was heading into a pandemic. One of our key supply partners is based in Wuhan, China. By the middle of January, the city of Wuhan was in complete lockdown with no opportunity to get product out. Fortunately, shipments were in transit to us to cover the imminent Chinese New Year period and with our stocking policy in place we had coverage for long enough to put a contingency plan in place. In this case being able to build in house – something Optos had done prior to outsourcing. Whilst challenging to reset up and get in materials, this was an approved alternative source. By the time Wuhan reopened and normal supply resumed we were well into March and the Pandemic had moved to Europe and the US. This all 41

Procurement & Supply Chain coincided with our traditionally busiest quarter ahead of fiscal year end in March. The impact of lock down specifically in Europe and the US rapidly prevented us from gaining access to customer sites in order to install product and therefore had an impact on our year end revenue expectations and resulted in significantly more inventory than we were anticipating. April was a month of rapid adjustment to the unfolding situation. Home working started for office-based staff, there was some staff furloughing in the UK specifically in the manufacturing and logistics areas, making the facilities COVID safe environments ahead of restart and ensuring that the business adapted to a new way of working to support future sales. From a supply chain perspective, the first task was to totally re-align our master production schedule to a revised forecast. This had a dramatic impact on our short-term requirements. Whilst we set a plan that anticipated a gradual return to normality through our fiscal Q2 (July to September) and back to budget levels through the second half of the fiscal year (October to March); Our Q1 was pretty much reduced to zero from an output level with any requirements being managed from excess inventory. We worked with our suppliers through this period and whilst the discussions were not without challenges, we were able to successfully create a route forward for both parties. Our suppliers were also adapting through this time and regular communication was key to ensure we were aligned on any deviations to the revised plan.

June saw a real change for the positive in terms of business activity. This was aligned partly to the lockdowns easing after the first wave of the pandemic, but mainly due to innovative ways in which the business tackled sales without a face-to-face visit. We also were seeing the impact of pent-up demand from end of March through April and May releasing as more clinics/opticians came back online. So, the next big challenge for supply chain was keeping pace with the recovery. We had created a gradual improvement in numbers, but it became clear as we entered Q2 that the recovery was ahead of the plan and therefore we were now making positive adjustments to forecasts – whilst this is a nicer problem to have, we were now conscious that suppliers were manufacturing in COVID safe environments, in some cases at lower capacity due to social distancing and then there were the logistics delays. The impact of the pandemic on passenger travel via airlines dropped significantly which had a direct impact on freight capacity – this coupled with prioritisation being given to PPE and latterly vaccines made air freight both costly and at longer lead times. We made several critical adjustments in planning and inventory holding to enable us to manage extended logistic lead times and incorporate a monthly 40ft container between the UK and US to try and limit the impact of rising costs. By December we were achieving higher monthly revenues and the pace continued to

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increase until to the end of our fiscal Q4 in March. We were able to support all the sales requirements although not without a few diving catches and even went through Brexit without too many dramas. As mentioned, after the initial challenges the business has gone from strength to strength. How did the business evolve? As I mentioned above, April was a real period of adjustment, but the business quickly responded to the situation. As well as supporting home working and realigning our facilities to be a COVID safe environment for those who needed to be there; (As a manufacturer of medical equipment we were declared as essential from the outset) we were also working on innovative ways to engage customers. Whether that was via online forums or via the creation of the virtual showrooms we were able to maintain contact with existing customers and bring in new customers. We were also assisted by products - our core products produce high resolution optomap® images of 82% or 200 degrees of the retina, something no other imaging device is capable of in a single comfortable capture. The most recent innovation from Optos integrates ultra-widefield retinal imaging and imageguided Optical Coherence Tomography (OCT). Being able to capture images quickly and across the different operating modes on a single device seemed to be conducive with socially distancing requirements and supported less clean downs of multiple systems between patients. We saw a notable switch in our expected product mix in the first months of the recovery.

Optos Monaco The Optos supply chain function plays a pivotal role in business decisions. How important is the ability to sit at the table and collaborate with internal stakeholders in ensuring a smooth supply chain operation? The answer seems obvious to me, it is critical. However, it is not always viewed as such in every business. If an organisation wants to realise full value from its supply chain, then understanding that early engagement can make significant difference in any outcome that is being worked. Some examples: being involved early in a product design cycle helps us ensure that the right suppliers are lined up ready to engage. Understanding changes in product mix or events that may drive sales spikes is key to our planning to position inventory ahead of those requirements. Having solid strategic relationships with your key suppliers and regular business reviews, enables you to get ahead of issues such as lead time extensions, part obsolescence, potential capacity constraints such that there is a consistent 43

Procurement & Supply Chain supply of materials to maintain level production. These may all seem obvious, but it is surprising how often these things can get overlooked. A good benchmark that your supply chain is working effectively is the feedback from the business. If there isn’t any, then things are usually working pretty well! It’s good to know that you have a team that can firefight and be great in a crisis, but if you can plan and prepare so that the crisis isn’t as bad or isn’t one at all, is a more optimised way of working and I would take that approach all day long! What do you believe are the main lessons your function has learnt during the challenges of the past months? It has clearly been a year like no other.

Businesses have had to learn to adapt to a new way of operating. Technology has been a great enabler for successful home working and whilst there were some elements of doing the job which missed the face-toface communication – it bridged the gap necessary to keep the wheels turning. I learned a lot about my team and about their resilience and flexibility to tackle the issues as they came along. The Supply Chain group had spent time the month prior to lockdown preparing the objectives we intended to achieve through fiscal 2020. It became apparent pretty quickly that those objectives would have to take a back seat as there were clearly important business priorities that had to be addressed.

Are your engineers bored?

Let us help you. Ibsen’s world-class spectrometer team brings numerous products from concept to volume production each year. If you let us design and manufacture your spectrometers, your team can focus on the system level aspects that bring a competitive edge to your instruments.

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I think the key lesson learned through this was that your supply chain is only as strong as the weakest link – understanding the supply chain risk and having an ongoing plan to address those risks remains the most significant task for supply chain leaders. Assessing this task is an ongoing process, not a one-time event. It can take a significant amount of time, resources, and commitment to maintain. It was not lost on me that some of the work we have done in the past 6 years aided us through last year in this regard, but there were other learnings coming from the pandemic that will shape risk planning going forward. Optos Daytona

Ibsen Photonics is a manufacturer of transmission gratings and spectrometer modules for integrators of spectroscopic measurement instruments. Our products are used in industries including medical, life science, pharmaceutical, agricultural, food, and security. The design and manufacture of spectral sensors at high volume is our area of expertise. Our knowledge and attention to detail provides our customers benefits in terms of unit-to-unit transferability, flexibility in supply, and no field returns. In contrast to many of our customers, who develop new spectrometer hardware once or twice per decade, Ibsen’s design team brings numerous products from concept to volume production each year. This helps us maintain a world-class spectrometer team with average experience of more than 10 years. That translates to faster and lower cost projects for our customers. By working in partnership with our customers during the development and manufacturing phases of their instrument, we are able to provide the optimal solution for their application. A direct communication channel is established between the engineering teams of each company which is more efficient than going through the sales network. We proactively initiate quarterly business reviews with our volume customers to ensure an open dialogue about delivery performance, product quality and development plans. Ibsen Photonics is not only focused on quality design but is also striving for a more sustainable organization. As a Danish company, our electricity is largely coming from CO2 neutral sources like wind energy. We also work with our customers to transport by sea rather than air when possible.

Sustainab

Porsche | Siemens Gamesa |

bility

| Bosch 47

Sustainability

BASF and Porsche partner to develop high-performing lithium-ion batteries for electric vehicles

ASF has been selected by Cellforce Group (CFG), a joint venture between Porsche and Customcells, as the exclusive cell development partner for its next generation lithium-ion battery. As part of the collaboration, BASF will provide high-energy HEDTM NCM cathode active materials to contribute to highperformance battery cells for fast charging and high energy density. Cellforce Group, based in Tübingen, Germany, will produce the high-performing battery. Its battery production plant is expected to start operations in 2024 with an initial capacity of at least 100 MWh per year, powering 1,000 motorsport and high-performance vehicles. As a global leading supplier of highperformance cathode active materials with a strong R&D network, BASF is ideally positioned to work with partners to contribute to a circular economy. With its production plants for precursor cathode active materials in Harjavalta, Finland, and for cathode active materials in Schwarzheide, Germany, BASF will be able to provide battery materials with an outstanding sustainability record for both responsible and reliable sourcing of raw materials aiming

for the lowest carbon footprint along the supply chain as of 2022. To close the loop, production waste from the future Cellforce Group battery plant will be recycled at BASF’s prototype plant for battery recycling in Schwarzheide, Germany. Lithium, nickel, cobalt, and manganese will be recycled in a hydrometallurgical process and reintroduced into BASF’s production process for cathode active materials. Sustainable mobility as a common goal “We look forward to collaborating with Porsche and the Cellforce Group to develop future high-performance batteries for electric vehicles and work together towards our common goal of sustainable mobility,” says Markus Kamieth, member of the Board of Executive Directors of BASF SE. “BASF’s cathode active materials will be tailored to Porsche’s specific needs leveraging our strong R&D capabilities. Furthermore, they will have an industry leading low CO2 impact thanks to our efficient manufacturing process, the high share of renewable energy, the upstream integration into the key raw materials as well as the short transportation route along the value chain. With battery

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recycling we can ensure that valuable materials are kept in the production loop and further reduce the CO2 footprint of our cathode materials by an expected total of up to 60 percent.” “As an automotive manufacturer, Porsche aims to be CO2-neutral in its overall balance sheet by 2030. In this respect, a low CO2 footprint, closed-loop recycling and sustainability are increasingly in the foreground,” says Michael Steiner, Member of the Executive Board for Research and Development at Porsche AG. “The cooperation with BASF is a win-win situation for all parties involved. European sources for the materials nickel and cobalt, the associated security of supply and the short transport routes from Schwarzheide to Baden-Württemberg in Germany were all important arguments for the decision to work with BASF. The battery cells – especially the cathode active materials – are at the center of considerations here.

We are very pleased that together with BASF we are bringing an environmentally friendly cell technology to series-production readiness.” “With its in-depth expertise in cathode active materials, BASF supports us in a core area of cell development,” adds Markus Gräf, Managing Director of the Cellforce Group. “The cathode active materials show very high cycle stabilities right from the start and are particularly good at fast charging. These are exactly the properties that Cellforce was looking for. BASF is also very committed to adapting the cathode active materials to the requirements of next generation silicon anodes. And in the production area, too, we have worked out a concept together with BASF on how production waste generated in the various areas can be collected and returned to closed-loop recycling. This saves costs and conserves resources as well as the environment.”

Sustainability

Siemens Gamesa puts decarbonization, recyc technological educatio ambitious new sustain

ustainability can only be addressed through long-term solid commitment. Siemens Gamesa strives to operate as an environmentally sustainable and responsible business to better serve all its stakeholders, from investors to customers and communities. The company has raised the bar, launching today an ambitious Sustainability Vision

towards 2040 to ensure its contribution has the most significant impact on the future. “At the heart of everything we do is a deep desire to improve our world through the provision of clean energy that will help to decarbonize the energy supply and tackle the threat of climate change. That purpose doesn´t just end with the provision of wind energy, however, and we

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clability and on at heart of nability strategy

Sustainability

are determined to take action across all our activities that will have a positive effect on the environment, our company, and society. Pushing the boundaries of sustainability is an important pledge to lead change now but also for the generations to come”, said Andreas Nauen, CEO of Siemens Gamesa. Among the numerous projects and initiatives, the plan outlines a way to help achieve a decarbonized economy with the goal of reaching net-zero emissions by 2040, including emissions produced by the company’s whole value chain. Previously, the net-zero target was 2050. To this end, the company will pursue opportunities to achieve a carbon intensity rate of zero-emissions per MW installed without any offset compensation measures. Some of the main actions will be replacing all new and existing heating and cooling systems with zero carbon alternatives, and self-generation in the wind farms and factories. “We are committed to embedding sustainability into the entire lifecycle of our operations and our corporate vision. With this plan we continue to be a frontrunner, building on our existing sustainability achievements and effectively demonstrating how our business is working to create a better future”, Gregorio Acero, Head of Quality and HSE of Siemens Gamesa.

The new targets reinforce Siemens Gamesa’s sustainability leadership by adding to several major decarbonization successes over the last months. Specifically, Siemens Gamesa achieved carbon neutrality and verified its climate targets by the Science Based Target initiative (SBTi), becoming the first renewable energy manufacturer to do so. Additionally, the company has switched to being powered 100% by electricity from renewable sources. Commitment to the circular economy The wind industry is still relatively young and is aware of its responsibility of finding a sustainable way to deal with wind turbine components at the end of their life cycle. Most of the components of a wind turbine can already be recycled today, but wind turbine blades, specifically, do represent a challenge due to the materials used and their complex composition. The business actively promotes the creation of a circular economy by identifying opportunities for large-scale product recycling, making turbine materials more sustainable and improving both waste and resource efficiency. To this end, the company announces an ambitious goal to redesign all its turbines to ensure a 100% recyclable turbine marketed by 2040 and fully recyclable blades by 2030. This step marks a milestone towards a fully recyclable wind turbine value chain.

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Generating a real impact in the company as well as in society Siemens Gamesa is fostering a diverse and inclusive work environment. To this end, the company has set ambitious targets for gender equality pledging to increase the female representation in the workforce as well as in executive management to 30% by 2040. The company focusses its social actions on actively reducing poverty in communities, fighting climate change, and

promoting technological education in line with the future needs of society. These are compatible with the company’s goal of aligning its focus to the United Nations’ Sustainable Development Goals. Find out more details in our new Social Commitment platform. To this end, Siemens Gamesa manages its SGRE Impact initiative that encourages the company’s employees to promote causes they’re passionate about, mobilizes funding, and encourages volunteers to participate in these projects. The goal is to effect positive change in the local communities where we are present. In order to fight climate change and build a more sustainable model, it is essential that we have enough trained professionals in STEM disciplines (science, technology, engineering, or mathematics). Therefore, the company will continue promoting initiatives in schools and universities such as its videogame Planet Rescuers to promote STEM education with Minecraft Education Edition, and Universities for Sustainability where we challenge students worldwide to think and find solutions to fight climate change through innovation.

Sustainability

Bosch honours its suppliers’ endeavours for sustainability

s it continues to pursue its sustainability strategy, Bosch has decided to recognize commitment to sustainability among its roughly 23,000 suppliers worldwide. For the first time, this year’s international Bosch Supplier Awards include an honour in this category. Announcing the award winners, Prof. Stefan Asenkerschbaumer, CFO and deputy chairman of the board of management of Robert Bosch GmbH, said: “With a current purchasing volume of 35 billion euros, Bosch’s responsibility in the global supply chain extends far beyond the factory gates. Together with our suppliers, we assume social responsibility, which also means striving to achieve a high level of sustainability.” For Bosch, the award is also an expression of partnership and longterm cooperation with its suppliers and service providers. Forty-six companies from 16 countries received one of the coveted Bosch Global Supplier Awards for their exceptional performance in various categories. The jury recognized Infineon, Salesforce, and Steelcase for their climate action programs.

Sustainable supply chains: spotlight on climate action With its 400 locations worldwide, Bosch has been climate neutral since the first quarter of 2020. In close cooperation with its global supplier network, Bosch wants to go one step further, and aims for a 15 percent reduction in its upstream and downstream CO2 emissions along its entire value chain by 2030. “Climate action is a collective task shared by industry, politics, and society,” Asenkerschbaumer says. “Climate-conscious action is a common bond between Bosch and its suppliers.” In the future, the company will make aspects such as CO2 emissions or CO2 ratings a criterion for awarding new contracts. “We plan to put some initial ideas into practice more broadly as of 2022,” the CFO says. Electrification and green hydrogen: opportunities for suppliers Bosch is focusing above all on electrification and hydrogen technology, for example in mobility and heating, in order to turn technological and environmental upheaval into new business opportunities. “Global efforts to combat climate change

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Prof. Stefan Asenkerschbaumer 55

Sustainability are boosting electrification and green hydrogen,” Asenkerschbaumer says. As for the associated business opportunities, he sees suppliers as important partners for Bosch: “Our suppliers and service providers play a crucial role in many technical innovations that ultimately help improve quality of life and conserve natural resources.”

Robustness: disruptions also affecting supply chains At Bosch, partnering with regional and local suppliers ensures a high degree of robustness and availability in the supply chain. According to Asenkerschbaumer, this strategy has once again proved invaluable in crises such as the coronavirus pandemic and the current market bottlenecks.

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Nevertheless, companies and their suppliers worldwide need to prepare early for changes in the event of ongoing supply chain disruptions. “At Bosch, we’re well prepared for this. We essentially take a decentralized approach by manufacturing locally in our customers’ countries and relying on a standardized global manufacturing network.” In light of the challenging business year, the CFO expects purchasing volumes in 2021 to be only slightly above the previous year’s level. Sustainability: award winners in the new category In this new category, Bosch honours its suppliers’ endeavours to promote sustainability. The criteria it applies are strict. “To kick things off, we focused on climate action programs,” said Dr. Arne Flemming, head of supply chain management at Bosch. “To make the shortlist, our suppliers had to demonstrate excellent overall performance as well as an A or B rating in the prestigious Carbon Disclosure Project.” Next, a jury of procurement and sustainability experts evaluated criteria such as the transparency of a company’s carbon emissions, its reduction targets for the years up to 2030, and its contribution to Bosch’s CO2 targets. This year, the semiconductor manufacturer Infineon, the software company Salesforce, and the office furniture manufacturer Steelcase are the recipients of the first-ever Bosch Sustainability Award. Infineon qualified through its many years of voluntary activities to reduce CO2 in production as well as its comprehensive

corporate strategy with ambitious sustainability goals. Salesforce impressed with its exclusive use of renewable energy starting in 2022 as well as with the CO2 reduction targets it has set its own supplier base. Among other things, Steelcase won over the jury with its integrated approach to CO2 reduction – from the selection of sustainable materials to their reuse. 17th Bosch Global Supplier Awards: honouring the best suppliers Across the globe, some 37,000 Bosch associates work in purchasing and logistics; they keep around 240 manufacturing plants supplied with parts and raw materials every day. The supplier of technology and services regularly honours the best of its suppliers from around the world with the Bosch Global Supplier Award. Award winners are recognized for outstanding performance in the manufacture and supply of raw materials, products, and services. A panel of judges evaluated the finalists in the categories of Purchasing of indirect materials and services, Raw materials and components, Purchasing of direct materials (by business sector), and a special Sustainability category. Bosch has been presenting these awards to honour supplier excellence every two years since 1987, and they are highly regarded in the industry. This year, due to the pandemic, the awards will be given individually.

Technolog

Eaton | Shell/Deutsch Teleko

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Technology

Transform Your Data Centre By Ciarán Forde, Data Centre Segment Leader, Eaton EMEA

t Eaton we believe the time has come for data centre designers, owners and operators to revisit many aspects of not only data design, but also the commercial model associated with their facility. We have arrived at this conclusion for several reasons, and we can offer some points of advice. The first reason relates to the Energy Transition. This is the industry term for what is essentially transition from fossil fuel power generation to renewable energy generation, distribution and consumption. The environmental case for renewable energy

has been evident for many years, but its adoption was extremely limited until recently. In 2017, however, our work with the research company BloombergNEF identified that the tipping point for renewable energy adoption had been reached in economic terms. Yet, whilst renewable energy would become very significant, gaps would remain beyond the tipping point. Now, as a result of recent policy shifts in the EU, its member states and UK, the push towards renewables has been accelerated and mandated. So, the question data centre

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designers, owners and operators must ask is this: ‘Is our industry ready for the energy transition and what will it mean for energy strategy and procurement, even security of supply?’. All this comes at a time when data centre tenants are taking a closer look at the sustainability credentials of the companies providing facilities or hosting their IT and applications. Guarantees of origin and Renewable Energy Certificates may not be enough for those looking to disconnect their IT from fossil-based energy. A very positive aspect of the energy transition is that it will require grid operators to enlarge and ‘open up’ the grid auxiliary service markets that provide a variety of energy services the grid operator needs in order to adopt high levels of renewable energy on the grid. Traditional fossil-based electricity generation has an inherent momentum or inertia which it affords to

the grid. Renewable electricity generation (wind/solar) does not have this, so additional reserves and services are required to ensure the grid remains stable, matching production to consumption. As flexibility is essential for a future renewable energy grid, it is a tremendous opportunity for forward-thinking data centre operators, because data centre back up power systems already have significant latent capacity to provide these services. What better accolade for a data centre, than its ability to not only use ‘green’ energy but also provide the grid operator with essential services to decarbonise electricity at grid level. Data centre operators can help ‘green the grid’ for themselves and others, ensuring stability of supply and be remunerated for doing so, simply by using assets they already have. The added advantage is that providing such services in no way impacts the primary function of these assets - which is to provide a 100% guaranteed supply of power to the data centre, should grid power fail - because the backup system remains fully available to the data centre. Services, such as fast frequency response, can be as short as milliseconds or seconds but on aggregate, across the entirety of the grid, they ensure the grid stays within its 50 Hz limits. That is why, since 2014, Eaton has embedded this function into its UPS systems. This technology is called EnergyAware UPS and it transforms a data centre into a gridinteractive data centre. The second reason for re-evaluation of data centre transformation relates to adopting what Eaton calls the ‘System & Service’ approach. Having examined the 61

Technology

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Now, as a result of recent policy shifts in the EU, its member states and UK, the push towards renewables has been accelerated and mandated. So, the question data centre designers, owners and operators must ask is this: ‘Is our industry ready for the energy transition and what will it mean for energy strategy and procurement, even security of supply?’.

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complexity and cost of data centre design, procurement, build, installation and commissioning, we identified several ways to reduce cost and time to market, and at the same time enhance the resilience and efficiency of the data centre. To do this, we innovate, design and manufacture at the component level, product level and system level: from the smallest critical circuit breaker, to the largest critical power system; and from the medium voltage substation, switchgear, transformers, UPS, and power distribution units, to the intelligent rack PDUs. Each electrical building block in the data centre is understood from the lowest level to its highest function. We use this knowledge to support data centre design via value engineering, dimensioning, and optimising the known performance and functionality of the various elements and how they work together. Despite best efforts in system engineering, working with a variety of products from a variety of vendors, the engineering effort and the result can rarely obtain the same performance or optimisation levels compared to a portfolio that has been developed to work ‘as a system’ from the outset. There are less unknowns, uncertainties and more insights to be gained. This means the system integration, interfacing, coordination, ratings, protection and safety tasks become less onerous and can produce a higher performing design. There is, of course, the practical and project implementation side, too, with benefits in shortened timelines and costs. But it is not just the system performance ‘day one’ that matters. A successful data centre is one that can sustain performance operationally with options to scale up and

provide the flexibility to accommodate changing commercial objectives and opportunities. This is where services come into play. From the outset, by combining system design with the anticipated services required to operate and maintain the facility, both can be cross optimised, and it is the reason why Eaton created its System Integration Services (SIS) unit. By combining system integration and service capabilities into one coherent unit, the data centre design support factors in the suite of services that may be required. This tailored approach means that services which are not required can be removed or reduced and it also means that other areas are not overlooked or underestimated. With a combined system and service approach Eaton can assist data centre consultants, designers, owners and operators to transform their method of approach and transform the overall economic and functional performance of their data centre, not just for ‘day one’ but over its operational lifetime. Other aspects of data centre transformation, including cybersecurity, intelligent connectivity and edge data centre can be found on the Transform Your Power Network website along with our supporting whitepapers and on-demand webinar series.

Technology

Shell and Deutsche Telekom agree to advance digital innovation in pursuit of climate goals

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hell Gas & Power Developments BV (Shell) and T-Systems International GmbH (T-Systems), Deutsche Telekom’s corporate customers arm, have signed a memorandum of understanding (MOU) to advance digital innovation as both companies accelerate their transitions to net-zero emissions.

n Pursue the net-zero goals of both

companies, their supply chains and customers n Collaborate on innovations and

services to accelerate Shell’s digital transformation n Work together to identify opportunities

The MOU builds on an existing technological relationship between Shell and T-Systems. Under the terms of the agreement the two companies will:

to co-invest and participate in new business models focused on the decarbonisation of society.W

Technology

To accelerate the transition to net zero, Shell is supplying renewable energy to T-Systems sister company, T-Mobile US, which is working towards a goal of operating on 100% renewable energy by the end of 2021. In turn, NewMotion and ubitricity, subsidiaries of Shell which provide electric vehicle (EV) charging solutions across Europe, have awarded T-Systems a contract for Deutsche Telekom field engineers to install more than 10,000 EV chargers in Germany over the next three years. The collaboration on innovations and services, reflected in the renewed global master services agreement entered into between Shell and T-Systems in 2020, will see Shell’s current Dynamic Hosting Services solution replaced with the next version of Private Cloud. Both companies will also aim to deepen their IT products and service capabilities and explore new areas of digital innovation, including Hybrid and Edge Computing, which are different forms of data storage, as well as 5G connectivity. Shell has also installed immersion cooling technology for greater computing and energy efficiency in one of the T-Systems data centres in Amsterdam, the Netherlands. Deutsche Telekom and Shell are also exploring the viability of smart city solutions, aimed at helping cities decarbonise and providing aggregated city

data. For example, “Citykey”, which could deliver EV-charging and mobility data on an easy-to-use app. The two companies are also exploring the potential of smart lighting projects with streetlight-based EV-charging possibilities. “We are delighted to deepen our relationship with Deutsche Telekom and help the company to pursue its netzero pledge while progressing our own target to be a net-zero emissions energy business by 2050, in step with society,” said Elisabeth Brinton, Executive Vice President Renewables & Energy Solutions at Shell. “Getting society to net zero will require unprecedented levels of collaboration.” Adel Al-Saleh, Deutsche Telekom board member and CEO of T-Systems, said: “We are committed to acting responsibly along our entire value chain and working together with our clients is pivotal in this. No individual and no company can solve the climate challenge alone. This is why we have put sustainability at the core of our strategy as we aim to become the leading European full IT-service provider. This newly signed MOU allows Shell and Deutsche Telekom to leverage their longterm collaboration, teaming up in new areas that will benefit society.”

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Infrastruct

Daimler-Traton-Volvo JV | Vo

cture

olocopter | bp 69

Infrastructure

Daimler Truck, the TRATON GROUP and Volvo Group collaboration

he three leading commercial vehicle manufacturers Daimler Truck, the TRATON GROUP and Volvo Group have signed a non-binding agreement to install and operate a high-performance public charging network for battery electric heavy-duty long-haul trucks and coaches across Europe. The joint aim is to initiate and accelerate the build-up of charging infrastructure to enhance customer confidence and to support EU’s transformation to climate-neutral transportation. The agreement lays the foundation of a future joint venture (JV) - equally owned by the three parties, planning to start operations in 2022. The parties intend to invest together 500 million Euros to install and operate at least 1,700 high-

performance green energy charging points close to highways as well as at logistic and destination points, within five years from the establishment of the JV. The number of charging points is with time intended to be increased significantly by seeking additional partners as well as public funding. The future JV is planned to operate under its own corporate identity and be based in Amsterdam, Netherlands. The future JV will be able to build on the broad experience and knowledge of its founding partners in heavyduty trucking. The future JV will act as catalyst and enabler for realizing the European Union’s Green Deal for a carbon-neutral freight transportation by 2050 – both by providing the necessary infrastructure and targeting for green energy at the charging points.

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The joint action of Volvo Group, Daimler Truck and the TRATON GROUP addresses the urgent need for a high-performance charging network to support truck operators with their transition to CO2-neutral transport solutions, especially in heavy-duty long-distance trucking. High-performance charging infrastructure enabling long-haul trucking is a cost-efficient way towards significant, fast-to-realize emission reductions. Martin Daum, CEO Daimler Truck: “It is the joint aim of Europe’s truck manufacturers to achieve climate neutrality by 2050. However, it is vital that building up the right infrastructure goes hand in hand with putting CO2-neutral trucks on the road. Together with the TRATON GROUP and Volvo Group, we are therefore very excited

to take this pioneering step to establish a high-performance charging network across Europe.” Matthias Gründler, CEO TRATON GROUP: “For the TRATON GROUP, it is clear that the future of transport is electric. This requires the rapid development of publicly accessible charging points, especially for long-distance heavy-duty transport. We are now moving forward together with our partners Daimler Truck and Volvo Group to make this high-performance network a reality as quickly as possible. We now make the first step to accelerate the transition towards sustainable, fossil free transport. The second step should be a strong engagement of the EU for the full scale-up of a charging network across Europe.” 71

Infrastructure

Martin Lundstedt, President and CEO Volvo Group: “We are laying the necessary foundation in making a break-through for our customers to make the transformation to electrification by creating a European charging network leader. We have powerful electromobility technologies, and now, with Daimler Truck, the TRATON GROUP and thanks to the European Green Deal, also an industry-wide understanding as well as a political environment to make fundamental progress towards sustainable transport and infrastructure solutions.”

A recent industry report* is calling for up to 15,000 high-performance public and destination charging points no later than 2025, and up to 50,000 highperformance charging points no later than 2030. Therefore, the kick-start of the partners is a call for action to all other industry players, as well as governments and regulators, to work together for a rapid expansion of the necessary charging network to be able to contribute to reaching the climate targets. As a clear signal towards all stakeholders, the

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charging network of the three parties will be open and accessible to all commercial vehicles in Europe, regardless of brand. Customer centric approach taking different applications into consideration By focusing on customers’ needs, different applications will be taken into consideration. Battery electric vehicle fleet operators will be able to leverage both fast charging tailored to the 45-minute mandatory rest period in Europe focusing on long-distance transport – the highest

priority of the future JV – and also charge overnight. Partners in the joint venture, but competitors in all other areas Volvo Group, Daimler Truck and the TRATON GROUP will own equal shares in the planned JV, but continue to be competitors in all other areas. The creation of the JV is subject to regulatory and other approvals. The signing of a JV agreement can be expected by the end of 2021.

Infrastructure

Volocopter and DB Schenker announce first blueprint for VoloDrone operations

he, tpioneer of urban air mobility (UAM), Volocopter, and international logistics leader, DB Schenker, announced that they have successfully conducted a joint static proof of concept (PoC) at Messe Stuttgart for VoloDrone ground operations in logistic centers. Together, the partners are creating the first blueprint for electric cargo drone ground operations in logistics with the support of Fraunhofer Institute for Material Flow and Logistics. The static PoC tested how logistics operators can manage personnel, payloads, automated ground vehicles, and VoloDrones to create an efficient process and a safe environment for future VoloDrone operations. The blueprint derived from these results will be the first of its kind and serve as a basis for integrating VoloDrone operations in logistics networks across the globe, realizing automation and sustainability ambitions in supply chains. Christian Bauer, CCO of Volocopter: “By developing a blueprint for VoloDrone operations, Volocopter is leading the

way into the next dimension of transport logistics with tangible and operational data backing our service claims. Our work with DB Schenker shows that they are a great investor, a valuable partner, and an enabler for our commercial VoloDrone operations.” The research teams from Volocopter, DB Schenker, and Fraunhofer IML simulated the VoloDrone integration in a logistics network by examining the ground processes for coding goods, assessing safe cargo loads and goods, testing the automated supply of the drone through autonomous vehicles, and identifying other necessary pre-flight cargo checks. Following this, the processes for transporting and loading the VoloDrone payload were conducted and examined to identify safe, standard procedures for employees on the ground preparing the VoloDrone for flight. Erik Wirsing, Global Head of Innovation at DB Schenker: “The VoloDrone unlocks new possibilities for the logistics industry, and it represents a key element for DB Schenker’s innovation and sustainability roadmap for logistics. Volocopter’s leadership in this

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emerging urban air mobility industry is most evident in their practical solutions, their customer-centric approach, and their commitment to bring UAM to life.” Since the beginning of their collaboration in mid-2019, Volocopter and DB Schenker have been developing the VoloDrone for commercial launch and assessing use cases for business-to-business drone services in logistics. The VoloDrone, Volocopter’s heavy-lift and versatile cargo drone, is battery powered, can transport a 200 kg payload up to 40 km, and has 18 rotors and motors powering the electric vertical take-off and landing (eVTOL) aircraft.

This UAM solution for intracity logistics will operate within Volocopter’s UAM ecosystem for cities, also consisting of passenger mobility services (VoloCity and VoloConnect), their infrastructure (VoloPort), and a digital backbone to coordinate and view all operations in real time (VoloIQ). The automated mobile robots for this PoC were provided by DB Schenker’s partner, Gideon Brothers, a pioneer for autonomous mobile robotics. Once it is finalized, the blueprint will be available for project partners under a nondisclosure agreement.

Infrastructure

bp joins the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping as a strategic partner

p and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping today signed a partnership agreement committing to a long-term collaboration on the development of new alternative fuels and low carbon solutions for the shipping industry. As a strategic partner to the Center, bp will second experts to work on relevant research and development projects in the Center’s portfolio and contribute to the development of methodologies and optimized pathways for safe and sustainable fuel solutions for shipping. Additionally, bp will join the Center Advisory Board providing guidance for transition strategies and further development of the Center’s activities.

William Lin, bp’s executive vice president of regions, cities and solutions said: “At bp, we want to play a role in advocating for policies to help decarbonize carbon intensive sectors like shipping. The shipping industry’s transition to net zero is complex and requires technology advancements and policies that will give companies across the value chain the confidence to act. This is a privileged opportunity to collaborate and advocate with key industry players to progress solutions at the pace and scale needed. When we work together, we can fast track development, de-risk investments and provide signals to the market that will speed up the decarbonization of the shipping industry.”

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In welcoming bp, the Center CEO Bo Cerup-Simonsen says: “We are extremely proud and delighted to welcome bp to the Center as a strategic partner. We share the same high ambitions and sense of urgency when it comes to creating real climate action and I look very much forward to the collaboration. bp brings extensive expertise in production, storage, handling, transportation and usage of fuels and great experience in driving safety and efficiency in shipping. I see enormous potential in leveraging and applying this knowhow to accelerate the development of future netzero solutions for the maritime industry.” Sven Boss-Walker, bp’s senior vice president of shipping, said: “For more than 100 years bp has helped shape the shipping industry, from the development of large tankers to the invention of the inert gas system and the latest state-of-theart LNG carriers. Now is the time to work together with companies that share our net zero ambition and have complementary capabilities to shape the future of shipping.”

Shipping’s road map to decarbonization With 70,000 ships consuming m300Tons fuel p.a., global shipping accounts for around 3% of global carbon emissions, a share that is likely to increase as other industries tackle climate emissions in the coming decades. Achieving the long-term target of decarbonization requires new fuel types and a systemic and regulatory change within the industry. Shipping is a globally regulated industry, which provides an opportunity to secure broad-based industry adoption of new technology and fuels. To accelerate the development of viable technologies a coordinated effort within applied research is needed across the entire supply chain. Industry leaders play a critical role in ensuring that research is successfully matured to scalable solutions that match the needs of industry. At the same time, new legislation will be required to enable the transition towards decarbonization.

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