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Christine Cheminay: There’s No One-Size-Fits-All Solution For Supply Chain Resilience

From the semiconductor crisis to a global pandemic and now the Russia-Ukraine war, the automotive industry has struggled with supply chain challenges because of global volatility. We speak to Christine Cheminay, Director of Global Purchasing Battery Systems at Webasto Group on the supply chain challenges facing the automotive industry, sustainability, and women in leadership.  

 

Global developments, such as the COVID-19 pandemic in 2020 and the recent Russia-Ukraine war, have a ripple effect across industries. What are some supply chain challenges facing the automotive industry right now?

It is a very volatile situation and indeed, while we start from COVID-19, let’s also not forget about the semiconductor crisis. We have been facing a shortage of chips for almost two years and are chasing electronic components on a daily basis.  with COVID-19, the effect was increased because, in that period, modern consumer products got a stronger focus while automotive volumes went down. As now both industries want to be on a high level, we face a shortage and price increase.

We see the same effect on energy and logistics for the past year. Plus, the raw material prices have increased and now there is war in Ukraine where we have partners and suppliers that we need in our chain.

What it led to is a need for us to be fast in creating a task force and implementing it in our daily business, to have daily check routines, resilient people, and reliable supply chain tools. This is a challenge.

It is putting a lot of pressure on people. COVID-19 brings a lot of mental challenges. Not for everyone, but there are people who are tired, lonely, and stressed – overall overwhelmed by this situation, and we should not forget this in the daily run of activities.

I think that tension must be in the daily focus of leaders in a company – to think about how we care about our people. Where can we support them and how can we create balance?

And it is not only about big steps. I think we need to watch the small steps and small support for our people. It is an attitude of how we approach our people to get into a positive mindset based on our values, our culture.

But of course, the longer these struggles last, the more exhausting it is for everybody. So that’s why we cannot just rely on being friendly to each other or doing an activity together. We must really think about how to implement an environment that is supporting the challenges of the market.

 

How can businesses ensure supply chain resilience amid disruptions due to global crises?

That’s interesting because we’ve talked about resilience for almost two years now. We started with COVID-19, and now companies who can be resilient have already implemented plans.

But in an individual business-related situation, we need to look at what resilience really means. For purchasing, it can mean different sourcing behavior (e.g. multiple-sourcing instead of single sourcing). Or can we change to a different material or technology?

For me, a one-size-fits-all solution doesn’t exist.

I really believe that sometimes we need to be creative or change the demand. And that cannot be implemented from just one function. It always has to be a cross-functional activity in a business environment.

For example, if I have a certain chip on a battery management system that I foreseeably cannot get on the market, the team of purchasing, R&D, validation, and sales need to find a solution together.  

And what I also believe is that, to some extent, we need to accept that there are disruptions. I do not see an end for the moment. Rather than just accepting the situation, we prepare and support our people in the best way. We need to understand which people are not coping well with this pressure and guide them as leaders.

 
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What do you think are the main obstacles organizations in the supply chain and automotive industries face with improving their ESG initiatives?

It’s kind of an additional focus that we have seen for a while. I really trust, especially in automotive, that we are already good to some extent. But what I see is that we have to decide on the right tools and define the right measures for baselines and targets. If you have that, you can always define a strategy and ensure that it fits to the business.

Sustainability has a price tag, and I think as a society, we must be honest about that. I think sustainability won’t be possible by just doing things differently. I think we also need a change in our approach and how we measure our business, our sustainability.

Let us compare it to personal behavior. If you are truly convinced that it’s better to buy local products, you will change your behavior.

Coming back to business, the whole supply chain is responsible. For me, there is a big chance now to take a holistic approach to how we, as a society, want to treat the environment, the world, and what are the consequences. How do we ensure that what we intend to do is happening on every level of the chain?

In this matter, digitalization and data solutions are key aspects as well. I don’t think any of this is possible without that.

 

Though the number of women in leadership positions has increased overall, the automotive industry appears to be lagging in this respect. Why is this and how can organizations within the automotive industry attract more female talent into this field?

For me honestly, that’s still a big-ticket for the many industries, institutions, and governments. And for me it is not about gender only. The key is gender and diversity.

Sometimes I also do see some light. We see more women in leadership now; we see more diversity. I think this is the most valuable approach a company can take. If we have one cultural background and one dominant gender in a company, this cannot bring an organization to another level. Yes, I believe gender and diversity causes more friction and it is more exhausting, but I truly trust this brings businesses forward.  Therefore, we have to incorporate this approach in how we set up teams and organizations.

To encourage more female or diverse team members, I think role modeling and mentoring are important. Plus different working models like shared leadership. It is not simple, but I trust it is possible.

I also think being flexible is important for example when it comes to mobile offices. Are we forcing people back to office?  Are we going back to the Stone Age? I think there’s room for flexibility and improvement.

Also, social acceptance that women are working and having a family is important. . This is a mindset and I think it is something we can just continuously work on.

Still, I have to say, I do like the quota. At one point in time, hopefully we will not need it anymore. But for the time being, we don’t see enough success and quota is the lever to drive implementation.

There is room for changing minds, but we must have the courage to trust that change is healthy. Of course, that’s not to say we don’t have to work hard. We know this is a competitive market and we cannot be happy all the time.  We have to be creative and innovative. We have to push and find new solutions, and work hard and smart. But we also have to balance it out with an environment that allows and ensures open mindedness, while driving a culture where diversity is a given.

*The answers have been edited for length and clarity.   

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HEINEKEN’s Magne Setnes: Resiliency, Risk Management, and “The Swiss Army Knife” CSCO

The supply chain continues to be an ever-growing complex system that, just like precariously stacked dominoes, can be affected and disrupted by several things. Be it from transportation breakdowns (Suez Canal obstruction) or shortage of resources (global chip shortage), the chances of something that can impact a business’s supply chain system are correlatively rising.

With the gaps within businesses’ supply chains being evident, especially after the wake of the pandemic, it is obvious that supply chain leaders and CSCO will need to focus on resilience to overcome them.

As the Chief Supply Chain Officer for HEINEKEN, Magne Setnes shares with us his insights on why resiliency and financial understanding need to be the priority for organizations today and why being a “Swiss Army Knife” is necessary for a modern CSCO.

 
Want more insights from Magne Setnes? Join him and many other industry leaders in Management Events’ 600Minutes Supply Chain Management event in the Netherlands.
 

Prioritizing visibility, resiliency, and sustainability in the supply chain

The supply chain landscape has undergone massive change due to the pandemic, a majority of which had negative effects on many companies and businesses. These changes and disruptions have pushed many supply chain leaders to rethink the importance of visibility and resiliency within their organizations.

Setnes echoes these priorities in his role as CSCO for HEINEKEN, but at the same time, highlights the broader picture that other supply chain leaders will need to focus on for the future.

 

What are the priorities for organizations in facing disruptions? What key areas should supply chain leaders focus on for the future?

 

When it comes to disruption, very often you can make the mistake of thinking that once you deal with the disruption, it will go away. I am not so sure that is going to be the future moving forward and we are seeing now that disruptions are staying longer than expected. As we move into the future, we will see more of these disruptions.

So, you must create a resilient supply chain, which is good advice for the future. And there are other areas that your organization needs to be very aware of, such as the various tiers in the supply chain. It’s not enough to just look one tier downstream or upstream. As a CSCO, you need to start looking at, for instance, your supplier’s supplier and try to understand how all of your supply chain system works.

Of course, to operate on that level, you will need to have more visibility in your supply chain. I see many companies, including ourselves, working hard on creating better insights and visibility, both upstream and downstream. In addition to working on other areas like scenario planning and forecasting consumers’ and customers’ needs.

Another one that is also on the table of supply chain officers around the world is the whole impact on the environment and how it impacts us. Sustainability and social responsibility are very much something that will impact more in the supply chain and might lead to some disruption. 

For instance, the availability of certain raw materials and how they are not sustainably supplied can lead to disruption. Your supply chain needs to pursue sustainability and achieve the goal of being a sustainable company.

 

Tackling supply chain risk management and initiating change in operating models

The supply chain is the fuel that keeps the engine moving for all things retail and manufacturing. Take that out, and you have no product, no inventory, and no revenue. When faced with disruptions to the supply chain, retailers and manufacturers are often scrambling to get everything in order.

Based on a survey conducted by Gartner in 2020, only 21% of respondents have built a highly resilient network, which is less than ideal. Setnes highlights the need for having proper risk management strategies and operating models that can help supply chain leaders get ahead of those risk factors. 

 

How should CSCOs strategize their approach in achieving good risk management? What aspects should they focus on?

 

We have a well-regulated and governed risk management process in the company as a whole. But when it comes to strategizing risk management, our approach is to, as a company across all functions, get together and identify what the biggest risks are and make sure we create a picture of success.

I think that it is important to create a picture of success, work your way back from that, and in this way create a plan on how to get there. Of course, this is not an easy task, and quite a lot of work goes into this, but it is also very helpful for organizations as it shows you the things that you need to get done and what you need to get organized in your supply chain or your value chain. 

In managing this, scenario planning becomes very important. To create ideas and consider, “What if this happened, or if that happens”, and to develop scenarios in order to activate solutions when something does happen. In reality, of course, the scenario you plan for is not exactly going to be what’s happening, however, it brings that mindset of being ready and creating some resilience in your supply chain.

Another important aspect is to look at and understand the financials of your value chain. To get away a little bit from averages, to understand not only the average performance but also certain product lines. That way, when a disruption happens or if you experience a big shift from the consumers, you understand how it is going to impact you financially as well.

Last but not least, having a pulse on customers and consumers is very, very important. 

 

What are the challenges and approaches for CSCOs in initiating change within their supply chain operating models?

 

I think many supply chain officers have to deal with the fact that, in the leadership of the companies where they participate, conversations are very often commercially oriented. 

But the supply chain is a collective of small pieces and it can be difficult to convey changes in supply chain operating models in a way that is easy to grasp. You change something here and several tiers further something else changes and this is not always straightforward to work with.

So, having a clear understanding of all your product lines, understanding where the costs are, and where your bottlenecks and difficulties are, are key factors in the decision-making process at the company level as they directly relate to the financial or sustainability outcome of your company.

Typically, when you have a certain product, it will have a product owner, maybe a marketeer who will eventually own a product line. And if you want to make changes, if you cannot illustrate the true impact of the change in terms of sustainability, financials, or customer appreciation, it’s going to be very difficult to have that discussion.

Having that value chain view will be key in these types of decision-making processes and in initiating change. 

And in the past, we were driven by KPIs that were typically about efficiency, productivity, and availability. However, you have to add the financial and sustainability impact and I think CSCOs are finding themselves having more and more conversations with their commercial and financial colleagues to further strengthen the understanding of the value chain as a whole.

 

Equipping The Right Tools and Traits For The Modern CSCOs

The unprecedented disruptions organizations faced in recent years have shown the importance of the chief supply chain officer in encouraging supply chain sustainability and resilience. This newfound importance and influence the role has on the rest of the C-suite and the entire organization means CSCOs must equip themselves with the right tools for the future.

However, Setnes points out that the necessary traits that the modern CSCO must be equipped with are often not so clear-cut. Rather, it’s about being a “Swiss Army Knife” of sorts where they need to use the right tool in the right situation.

 

Are there necessary traits that CSCOs need to be equipped with within today’s post-pandemic landscape?

 

I think it very much relates to the company or the culture in the company and how they are organized. The supply chain has always required deep expertise and you still need core competencies, whether it’s in technology, logistic management, or business.

So, the core competencies are still very much needed but now, you need to be much wider because the supply chain is an end-to-end game, not just a department in a company. It’s a process that runs from one end to the other end of your entire value chain. A process supported by digital tools, to deliver financial results, customer satisfaction, and overcome the sustainability challenge we all face.

Because of that, the future supply chain officer will need to be more oriented towards understanding the dynamics of their entire value chain and also be well-equipped in terms of customers, consumers, digital and financial understanding. So you can talk with marketeers and commercial colleagues just as easily as with the IT and finance departments. Last, but not least, is the whole dimension of sustainability. 

CSCOs today are becoming broader and broader in their orientation. And while you cannot have deep knowledge of everything, you need to have good core competencies from which you can build your “umbrella”. We are like the Swiss Army Knife. The most used tool might differ a little bit from industry to industry, company to company, but in general, the Swiss Army Knife is becoming bigger.

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Alin Kalam: Nurturing Growth and Innovation Through Data, AI, and Sustainability

The IT industry continues to grow and shift rapidly due to the pandemic and CIOs are constantly on the lookout for ways to foster and adopt new technologies into their organization. Whether it is sustainable transformations or implementing AI, change is necessary.

As the Head of International Market Intelligence & Data Strategy for UNIQA international, Alin Kalam shares with us his insights on the need for agility through AI, achieving business competence, and nurturing innovation.

 
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Finding Agility in Artificial Intelligence and Overcoming Disruptions

Businesses and IT leaders today need to be quicker to respond to the ever-changing landscape of their industry and overcome disruptions. Whether it’s to implement hybrid workplace models or to incorporate new technologies such as artificial intelligence and data analytics, there is a definite need for CIOs to strategize.

Kalam shares his insights on the key challenges that CIOs need to be aware of when incorporating new technology and how to effectively transition towards data-driven business models.

 

What are the key challenges for CIOs who are trying to adopt new technologies especially in the AI field?

 

Surely one of the major challenges of establishing AI technologies in companies is lack of trust and also limited knowledge existing. On the technical side, I see the IT productionizing & operational issues arising since 2019. 

Often it is not the number of best practices, that lack but the ability to align market circumstances with existing technologies with own true business needs. Therefore, I see the cultivation of AI-driven innovation much more as a strategic challenge nowadays than only a technological one.

 

What should CIOs be aware of in the transition towards data-driven business models that serve dehumanization of critical business fields?

 

On the one hand, dehumanization must be done quickly to address short-term issues e.g. through the implementation of RPA or AI products to combat challenges caused by Covid, and on the other hand, CIOs must balance strategically what and where they are automatizing/dehumanizing. I already have seen examples of cost reduction projects through dehumanization that are creating huge strategic risks for companies in the long run. 

For sure there will be someday an “after Covid” and using the current crisis as scapegoat for cost-cutting only without putting the focus on the product portfolio, customer needs, and above all operational risks of IT systems, can become a huge source of risk. 

Here I rather appeal to strategic long-term aspects than short-termed gains only and to address this concern CIOs must become business-driven more than ever!

 

The Need For Sustainability and Competent Business Intelligence

Companies were forced to change their policies, behaviors, and business strategy due to the prolonged coronavirus pandemic. The recent COP26 climate conference showed that companies are committed to making sustainable-focused organizational changes.

For Kalam, the need for sustainability in IT is clear highlights the challenges that many are still facing, in addition to incorporating competent business intelligence to ensure sustainable growth. 

 

Sustainable transformation in the IT & innovation field has become a key topic for upcoming years. What are the specific areas of action for CIOs in this field?

 

For sure sustainability as a topic is here to stay! Not only do we have the macro aspects of it addressing the major concerns of our time, but it has become also a business driver in so many sectors. 

With my initiated project Sustainista I, therefore, have tried to interconnect companies with the scientific community ensuring exchanging of data, know-how, best practices, and transparency. The biggest challenge in this field is the lack of market and scientific standards at the same time. ESGs might be known to many of us but breaking down its info business actions according to standard approaches/processes is the biggest challenge!

In an ideal world, CIOs and related roles are taking ownership of this topic and driving it to doable tasks, otherwise, I am afraid to see sustainability just as a cosmetic and marketing label without a true impact on business and how we do things.

A particular starting point is to understand macro goals as an organization and break them down to a very data level in organizations delivering measures and related actions with the help of existing data. Many companies I know from various sectors have started with external data sets 1st to deliver quick success that can feed this long-term topic.

 

How would you advise companies who are still struggling to incorporate Business Intelligence?

 

Here I clearly follow the storyline of failing fast succeed sooner. Instead of propagating a piece of technology IT must build a bridge with business and deliver quick wins. Even now I am often devastated whenever I see only PDFs and Excel Sheets with numbers/KPIs that do not reflect the fast reality of our businesses and data-driven decision-making across borders! 

Major issues companies face are data quality, integrity, and security issues. CIOs are hereby in the role of process enablers. Instead of being only technology-driven often the implementation of BI must be done in a joint-venture manner.

 

Ensuring Growth Through Data and Overcoming Legacy Challenges

One of the biggest hurdles for digital transformation efforts still stems from legacy systems that are often outdated and not integrated with modern solutions for business uses. Despite the fact that modernizing legacy IT systems is required for businesses to ensure growth, IT leaders are still faced with roadblocks and challenges.

For Kalam, however, legacy systems are not necessarily the main roadblock as it once was. Instead, the focus now for CIOs should be to apply best practices during data-driven business transformation and simplify their approach to nurturing experimentation.

 

With regards to data-driven business models, what are the best practices that CIOs and IT leaders need to keep in mind? 

 

In a matter of fact, the approach of data-driven business transformation is everything but only data-centric! It covers the end-to-end processes of entire product lines and the strategic setup of a company. After many years of data harmonization/migration projects, companies often find out their undone homework regarding “creating true business values to the company itself and its customers”. 

I myself often propagate the term “no business value without data, no data without a business case”. Between this symbiotic relationship lies the true success of transformation efforts. 

Aside from this core topic I often miss the foresight of wisdom! It means seeing the potential of data not only in core businesses but its extensions and added capacities. In my objective point of view, this foresight of wisdom and true added potential is often the key success factor to many.

 

One of the main challenges for organizations is to overcome legacy infrastructure. How can CIOs overcome the legacy obstacle? What are the skills and mindset needed to promote modernization for an organization?

 

To be honest I really do not see legacy infrastructure as the biggest road-blocker anymore. Especially throughout the last decade, there have been so many progressions in simplifications of legacy systems, that I have become more optimistic on that end out of my own experiences! 

I can´t remember when I have seen companies e.g. migrating legacy data systems into new all-in-one and all-ruling superior DWH, Data Lake, etc. Instead of searching for the holy grail, we have become more realistic about using data where they are at their best and being created. 

This Data Mesh approach has become a blueprint for software solutions as well just as agility was cultivated from the IT/Software world into day-to-day business & project management. But this process has just begun a couple of years ago, the community yet does not have a buzzword, but hey, never say never…!

 

Innovation and experimentation are at the heart of data-driven business models. How does one nurture an environment that promotes experimentation within their organization?

 

I rigorously follow the principle of K.I.S.S (Keep it simple, stupid) in the incubation phase of innovation projects. Instead of talking only and selling in this phase, organizations should apply these principles, aside from a minimum set-up of governance, risk mitigation process regarding GDPR, privacy, organizational risks, etc., and allow experimentation. 

Here the old wisdom of “too many rules & regulations kill true innovation & creativity” should be applied. 

If the internal challenges are too big, often I have guided companies and leading bodies into the world of entrepreneurship. 

The most successful CIOs & IT managers are those who run new innovation ideas or projects as a starting business operating from day 1. This can be a guarantee of nursing the true nature of innovation when nothing else is working.

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Gunnar Hagman: Digitaliseringen avgörande för miljö- och hållbarhetsarbetet i byggbranschen

Det har gått snart fem år sedan Gunnar Hagman tog över posten som VD för Skanska Sverige, när han i slutet av 2016 efterträdde Pierre Olofsson. Som ansvarig för ett av Sveriges största byggföretag ser han inte bara till att man bygger säkert – utan strävar även efter att få med hållbarhetsaspekten i alla delar av verksamheten. Digitaliseringen underlättar det arbetet. Men det finns även utmaningar på den fronten – inte minst när det kommer till lagstiftningen menar han. 

 

Hur kommer byggnads- och konstruktionslandskapet att se ut efter pandemin tror du? 

Det är en spännande fråga. Något som har stuckit ut är att bostadsmarknaden varit överraskande stark ända sedan förra sommaren. Det är kanske först nu som vi ser att det planar ut något. Troligtvis börjar fler och fler personer att lägga pengar på andra saker än sitt boende. Man kanske vill återvända till jobbet och spenderar inte lika mycket tid hemma. Därför svalnar bostadsmarknaden av litegrann och blir lite mer “normal” nu när pandemin klingar av.  

Sedan har många kommuner och regioner haft ansträngda finanser och fått statligt stöd. Inte bara i Sverige utan även i andra länder. Även detta måste trappas ner och då finns en risk att det kan bli en tuffare marknad. Men – alla prognoser pekar på att det blir en ganska stark ekonomi generellt i samhället och även för vår bransch. Så jag skulle säga att det ser ganska positivt ut.  

 

Efterfrågan på smarta byggnader ökar som svar på behovet av mer hållbara bostadsutrymmen. Vilka smarta byggtrender kan vi förvänta oss 2022? 

Om vi tar bostäder som exempel tror jag att fler och fler insett att man kommer att spendera mer tid hemma och jobba hemifrån i större omfattning än man har gjort tidigare. Det gör att kravet på att hitta en avskild arbetsplats i sin bostad kommer vara något man värderar högt. Givetvis ställer det krav på bra teknik likt fiberuppkoppling som man har i de flesta projekt idag.  

Tittar man sen på kontorsbyggnader tror vi på Skanska att dessa också kommer spela en viktig roll framgent, men det kommer att vara utmanande som företag att skapa samma “sköna känsla” som det är att vara hemma. Arbetsplatsen kommer att behöva vara mer som en magnet. Trevlig, energigivande, och kreativ. Mer av en mötesplats än bara ett skrivbord att sitta vid. Det är inte minst viktigt för att kunna attrahera de smartaste och bästa medarbetarna.  

Sen är det klart att hela digitaliseringsprocessen är i en form av brytpunkt nu, något som startade innan pandemin. Det har varit mycket förberedelser för smarta byggnader och göra de mer integrerade med datorverktyg. Det tror vi kommer att ta fart nu på allvar. Tekniken är så pass billig och datakraften så pass stor. Det finns även exempel på techjättar som investerar stora pengar i byggsektorn. 

 

Vilka är de viktigaste utmaningarna för bygg- och fastighetssektorn när det gäller just hållbarhet. Vad är förhållandet mellan digitalisering och hållbarhet?  

Man får se lite på kort och lång sikt när det gäller hållbarhet. Vi har satt som mål som många företag att gå ner till noll klimatpåverkan till 2045 och en halvering till 2030. Den planen bygger bland annat på att vi måste minska CO2-påverkan av stål, cement och fossila bränslen. Just cement har blivit en aktuell fråga i Sverige under sommaren som många noterat med Cementas tillstånd som nekades i Mark- och miljööverdomstolen. Det tycker jag var mycket tråkigt eftersom jag vet att Cementa fortfarande har höga ambitioner när det kommer till koldioxidneutral tillverkning av cement på Gotland.  

Cement står kanske för en tredjedel av alla utsläpp i Sverige i byggbranschen som helhet. Om vi tvingas köpa den från länder likt Kina, Turkiet eller Algeriet som verkar vara enda alternativet, ja då kommer utsläppen att vara större än de är idag. På kort sikt är jag lite bekymrad måste jag säga. Det är ganska tydligt att vår miljölagstiftning troligtvis behöver ses över och reformeras. Vi behöver göra en väldigt dramatisk omställning till grön produktion av stål, elektrifiera mer och bryta exempelvis kobolt som kan användas i batterifabriker. Alla inser efter FN:s senaste klimatrapport att tiden är knapp. 

Just när det gäller klimatet skulle jag säga att digitalisering är en förutsättning för att kunna uppnå en väldigt låg klimatpåverkan. Det är helt avgörande med ny teknik om vi ska kunna göra medvetna och kvalificerade val av material och produktionsmetoder. Inte minst för att få beslutsverktyg som gör att vi kan fatta vettiga beslut och därmed en låg klimatpåverkan. 

 

Skanska banar väg för hållbara lösningar inom byggbranschen. Är företaget på väg att nå sina hållbarhetsmål om koldioxidneutralitet innan 2045? 

Jag tycker att när det kommer till de delar som vi kan påverka själva ser vi en väldigt bra utveckling. Då tänker jag på sådana saker som att om vi har möjlighet att välja fossilfritt bränsle, ja då gör vi det. Den utvecklingen går ganska snabbt och vi har fler och fler kunder som kräver detta också. När det kommer till stål respektive cement är vi beroende av materialleverantörerna. I Sverige har vi två stora företag som vill tillverka koldioxidneutralt stål. Både HYBRIT som är ett samarbete mellan LKAB, SSAB och Vattenfall och H2 Green Steel som är ett fristående privat företag. Jag tycker det är jättespännande. Till 2045 är min förhoppning att vi kan ha fossilfritt stål till byggindustrin och att vi även kan återvinna material i en mycket större omfattning likt beton. 

Cirkulärt byggande är en superviktig del och jag tycker det går framåt. Vi har våra första helt klimatneutrala bostäder som vi har sålt i år och vi har startat ett nytt kontorsprojekt i Malmö i Hyllie som också är helt koldioxidneutralt räknat enligt vår livscykelanalys som bland annat bygger på att att tillverka solenergi i det här fallet i de här projekten som neutraliserar de utsläppen man har åstadkommit under själva byggprocessen. Vi försöker även jobba med att minimera vår påverkan ytterligare så klart genom smarta materialval och partnerskap med en del leverantörer av material. Och givetvis vill vi ha fler kunder som ställer tuffa krav på oss och som gärna vill utveckla klimatneutrala byggnader tillsammans med Skanska. Vi gör inte det här helt själva – det är en insikt som vi har.  

 

Det låter verkligen som att det går framåt och att framtiden ser positiv ut. 

Man måste vara positiv tycker jag. Man får inte blunda för att det finns utmaningar längs vägen som är ganska stora. Men redan idag finns de tekniska lösningar som krävs. Sen är frågan mer om vi kommer att hinna ställa om i den hastighet som krävs. Jag är själv personligen bekymrad och många med mig så klart. Det känns som att klimatförändringarna går fortare än vad forskare och experter har trott i sina scenarier och det känns bekymmersamt. 

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Sustainable Manufacturing: Do the Opportunities Outweigh the Challenges?

Supply chain resilience is the top business priority for manufacturing companies in 2021. This finding is no surprise as investors have been putting more effort into implementing sustainability programs. Kemira’s Senior Vice President of Global Supply Chain, Jori Fabricius, states that “no company today can say that sustainability does not have a role in their business strategy.”  

There is pressure on the manufacturing industry to ramp up sustainability efforts not just from an environmental standpoint, but in terms of readiness and continuity. This article provides an overview of the opportunities and challenges in four key areas related to sustainability — green manufacturing, digitalization and technology, smart factories, and talent management.

 

Green Manufacturing  

 

According to Fictiv’s 2021 State of Manufacturing Report, 40% of respondents are increasing investments in sustainable manufacturing to reduce carbon emissions and slow down future environmental degradation. The spotlight is on companies with textile-based products, where the environment bears the brunt of unsold inventory. Here’s an alarming statistic: 20% of the 100 billion garments produced annually are buried, shredded, or incinerated.  

Fortunately, companies like Vestre want to prove that sustainability is not only necessary but profitable. 

“It is possible to operate a profitable manufacturing firm in Scandinavia. It is possible to build a business based on longevity and sustainability. It is possible to self-generate sufficient solar power for all operations. It is possible to phase out materials that are harmful to the environment.”  

 

Opportunities:

  • Lean manufacturing is the gateway to zero-waste operations, using AI and IoT to transform green considerations into lean initiatives. For example, the Saturn Kanban implementation saved General Motors 17 tons of air emissions and eliminated 258 tons of solid waste per year.  
  • On-demand manufacturing makes supply chains shorter and more efficient by eliminating unnecessary production and reducing harmful waste. Also known as cloud manufacturing, the market is predicted to reach $112 billion by 2024.  
  • Circular economy frameworks extend the lifecycle of products and can be applied to every stage of the value chain. IKEA leverages AI and data analytics to identify the best locations for returned items so that they can be recycled and sold instead of ending up in a landfill.  

Challenges:

  • Hurdles in traceability and transparency throughout the supply chain, as well as different definitions of sustainability across cultures, can jeopardize sustainability efforts. Organizations need to communicate their sustainability goals with suppliers and partners alike.  
  • Lack of education among consumers on the environmental or social consequences of their purchases can render sustainable efforts useless. 
  • Missing infrastructure stands in the way of sustainable efforts. Replacing an entire supply chain is a mammoth task and does not happen overnight. For example, shifting from oil-based materials to bio-based ones. 
  • Sustainability is a costly investment. Therefore, leaders must implement change management carefully, considering regulations and investors’ needs.  
 

Digitalization and Tech Investments  

 

A study by IBM and The Manufacturer states that 67% of manufacturers have accelerated digital investments due to COVID-19. Digitalized processes provide real-time information and relevant metrics to help manufacturers with decision-making. Smart tech adoption has been delivering strong results in terms of cost savings, waste reduction, and productivity. The top five technologies according to manufacturers are cybersecurity, advanced data analytics, automation, IIoT, and AI.  

 

Smart Factories  

Smart factories are the heart of smart and sustainable manufacturing. No smart factory is alike as the combination of technologies differs by manufacturing approaches and industry. Therefore, smart factories are hyper-flexible, self-adapting, and scalable manufacturing entities.  

Examples of notable smart factories are HP’s Smart Manufacturing Application and Research Centre (Smarc) in Singapore and the U.S Clean Energy Smart Manufacturing Innovation Institute (CESMII). Both factories are fortified with technologies such as 3D printing, robotics, and analytics to develop new solutions and standardize processes across a global network of operations.

 

Opportunities:

  • End-to-end operations visibility allows traceability of products from manufacturing to delivery. This also allows for real-time and remote asset monitoring.  
  • Machinery utilization management with maintenance predictability reduces downtime. Equipment and products can be tested for malfunction and quality control. This results in fewer errors and human intervention for machine repair.  
  • More efficient planning for consumer demand with accurate material flow and assembly line processes is made possible with machine-driven data collection.  
  • Safety and optimization of working environments are improved with robotics and remote tasking. Automated processes allow operations to continue despite workforce disruption during unprecedented events like COVID-19.

Challenges:

  • Manufacturing is struggling to adopt smart technologies within the supply chain. The top five barriers that stand in the way are time and resources, securing funding, company culture, implementation, and finding the right technologies.
  • In terms of data collection and analytics, manufacturers are still working on finding cost-efficient options that fit their organizations.
  • Factories that use digital twins as part of their existing processes have to mitigate challenges in the five natural laws of digitalization —  people, lean methods, master data, connectivity, and open ecosystems.  
 

“These are the five challenges that you have to master before you can even take the next big leap with AI. Without that, even a digital twin is useless. If there is no basis for this, then the digital twin is lost.” — Johann Hoffman, founder of ValueFactoring® at MR Maschinenfabrik Reinhausen GmbH.  

 

Talent Management

 

The manufacturing industry has been majorly affected in the last 18 months and work arrangements are unlikely to return to what it was before. According to Deloitte’s 2021 Manufacturing Industry Outlook, manufacturers are finding ways to reshape the workforce and their tasks to manage disruption and uncertainty. An agile and skilled workforce is a key element of a sustainable manufacturing organization.  

 

Opportunities:

  • Manufacturers can develop a talent ecosystem to incorporate digital capabilities in the workforce. A talent ecosystem allows collaboration with external partners to build stronger talent pipelines for manufacturing. For example, a partnership between a manufacturer and a technical school with train-to-hire programs and role-specific training. 41% of manufacturers have already started forming new relationships to develop robust talent ecosystems.
  • Retraining and upskilling programs for existing employees to fill ‘middle-skill’ roles that demand expertise in robots, cobots, and other forms of automation. These programs will help manufacturers reduce furloughs and increase employee retention and engagement. 

Challenges:

  • Unwillingness to change may be one of the pitfalls for traditional manufacturing companies. From the factory floor to top-level management, the adoption of new skills and their importance must be addressed. 28% of manufacturing executives state that building new skills to match evolving work environments is one of their biggest challenges.  
  • The number of specialized nonstandard roles will increase in tandem with the organization’s digital capabilities. These roles will require advanced flexibility and problem-solving skills. Manufacturers are struggling to fill these roles, as evidenced by the average monthly job postings of 400,000 in the U.S. alone.  
 

Do the opportunities for sustainable manufacturing outweigh the challenges?

 

The answer is a hard yes. Supply chains are still reeling from the impacts of the pandemic and face new hurdles every day. Sustainable manufacturing is a viable solution for resilience and readiness, offering a much-needed ray of hope to manufacturers around the globe.

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Jori Fabricius: How Kemira Utilized Digitalization to Build a Resilient Supply Chain

After a disruptive year, supply chain & procurement companies are still reeling from the impacts of the pandemic. They continue to face obstacles in transportation and logistics, rising prices of raw materials, and shifts in customer demand.  

Supply chain leaders have realized that digitalization and sustainability efforts need to be prioritized to provide flexibility to respond to unforeseen challenges. Jori Fabricius, Senior Vice President of Global Supply Chain Management at Kemira, shares his insights on the post-pandemic supply chain landscape and its effects on tech adoption, leadership and more.  

 

The pandemic has accelerated digital transformation efforts in supply chain and procurement. What tech adoptions have been the most effective in mitigating the disruptions presented by the outbreak? 

There are many aspects to this, but what immediately comes to mind are control tower tools, visibility enabling tools and processes that support fact-based alignment across functions. The idea is to bring transparency to deviations as soon as possible and enable fast mitigations. 

  • Real-time execution controls (day to day): These were implemented at Kemira two to three years ago. The controls are nature operative and used in placing replenishment purchase orders and securing material availability. They are connected to visibility tools and alerts in real-time, providing personal dashboards that show performance and risk incidents to operators as they are happening. The addition of AI allows operators to supervise product quality and connect the dosing of chemicals.  
  • Planning tools (weekly or monthly, mid-term): These are extremely valuable as they provide optimized plans to mitigate potential or current constraints, and to enable fast cross-functional problem-solving. In Kemira, we started the implementation of upgrading the planning environment globally, which has been successfully taken into use for supply planning. 
  • Visibility tools (long-term): This is related to general aspects of performance — a good example is visualizing Kemira’s distribution networks with enriched built-in KPIs. This allows us to visually capture recent changes such as distribution cost performance, distribution distances, shipments sizes and transportation emission calculation.  

All these tools are necessary to drive performance and to enable faster, better decisions and implementations. This saves time, improves service and creates new business opportunities. Another thing to note is that these tools are highly dependent on cleansed, credible master data and one common enterprise resource planning (ERP) platform.  

 

In your opinion, how has digital transformation affected leadership roles in supply chain and procurement? 

Over my 30-year career, I think there has been a continuous change in the supply chain in terms of technology and science. In fact, the term ”supply chain management” did not exist before 1982 even though the concept has been around long before that.  

When digital transformation cracked the nut of “the distance dilemma”, the world became a smaller place and brought different cultures together. With more companies centralizing teams from their physical locations, supply chain leaders need to be culturally sensitive and emotionally intelligent to build engagement across diversified teams. 

Supply chain leaders also need to understand other functions better. They can no longer work in isolation. To be efficient, they need to gain knowledge on multiple industries and professions, and learn a number of skills. Going back to the tools I mentioned earlier, they are useless without analytical skills. Leaders must be adept at using IT tools because these are business-critical capabilities.  

 

Sustainability is a core part of Kemira’s business strategy and operations. Why is there an urgency for organizations to embrace sustainability and what are its long-term benefits? 

At Kemira, we can proudly say that our value system supports sustainable world thinking. One of our values is ”We care for people and the environment.” Having this value makes for a strong foundation for future sustainable initiatives.  

Other than values, we need to understand the different players around us such as our customers, investors, regulators, resource market and employees. In the last five years, investors have been putting more effort into implementing sustainability programs. No company today can say that sustainability does not have a role in their business strategy.  

In terms of recruitment, I think the fight for talent will only grow bigger as we go along. This is because the younger generation will choose companies that reflect their own values, and sustainability is a topic that comes up very often during Kemira’s job interviews.  

What do I think are the long-term benefits? I would say it is very difficult to work in this world if you are not a good citizen. Regulators, Customers and Investors for sure are moving in a sustainable direction which not only supports good citizenship but is also a ticket to a profitable business.   

 

What are the biggest obstacles when it comes to maintaining sustainability in all levels of the supply chain?  

It is fair to note that the obstacles are partly related to behavior and an individual’s value systems. It is difficult to change as culture and values always beat a good strategy. 

Because of that, I would say change management is the most difficult part as transforming current value systems may not happen quickly. Another hurdle is missing infrastructure – replacing an entire supply chain is a major change and does not happen overnight. For example, shifting from oil-based materials to bio-based ones. There is bound to be some resistance as current infrastructures have been in place for decades. Hence, leaders must implement change management carefully, taking into account regulations and investors’ needs.  

“It is easier to steer a boat that is moving and floating,” rather than one that is sinking.  

 

What can business leaders do to future-proof their supply chain and procurement functions in order to tackle unprecedented challenges? 

Organizations must be ready for a heavier fight for resources and competencies in the future. There will be market upsides and downsides, especially with leaner pipelines. Additionally, they must always develop new digital capabilities that drive business value and build engagement.  

Business leaders must also look for the best talent to join their companies but recognize that it will be a challenge. Engaged and flexible employees are role models and potential future leaders. They are usually the best people to secure an organization’s resilience and continuity.  

 

What are emerging supply chain trends in 2021 and 2022? 

I believe there are two main trends supply chain leaders should look out for:  

  • The new order after COVID-19: After 1.5 years of living in isolation and running operations, leaders need to reflect on the lessons learned from the pandemic. It has been no doubt a tough time for organizations. However, it is time to truly understand the phenomenon itself and to build a sustainable working model. 
  • Digitalization remains strong: There will be more choices for digital applications in operative work, like pricing tools. Procurement and sourcing platforms will also accelerate B2B integration and collaboration, and support building communities.  
 

*The answers have been edited for length and clarity.  

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Magdalena Gerger, CEO of Systembolaget: Why Brands Must Make Sustainability a Higher Purpose

Today’s consumers are experiencing an eco-awakening and are more conscious about the impacts of their purchases on the environment. Therefore, the demand for sustainable products is higher than ever before, resulting in growing market opportunities for retail organizations across the globe.  

Magdalena Gerger, CEO of Systembolaget, helps us understand how the focus on sustainability has affected the retail industry in terms of operations, leadership, customer experience, and more.  

 

Why is there a growing urgency for sustainability in the retail industry? And do you think there is a link between this urgency and COVID-19? 

The urgency comes across all parts of our societies and applies to all solutions. It is a question at the heart of everything we do these days. Retail is an industry at the forefront of it. Many retail organizations have expressed a higher purpose in sustainability as there is a constant flow of consumption.  

We at Systembolaget have also done the same — making sustainability a higher purpose where everyone can get involved. It has made sustainability initiatives aspirational and interesting for both our suppliers and consumers.  

It is the same for employees. These days, organizations that want to attract talent will start by explaining how they have a meaningful role in creating a better planet and better social conditions. This goes for owners and investors too. 

Is it linked to the pandemic? Yes. The pandemic has snowballed effects and increased the pace and clarity of society’s thinking. Fundamentally, sustainability was there before. It has not changed in actual content or desire to do better things for the planet. 

 

What are some immediate sustainable initiatives retailers can implement in their organizations? 

Everyone, retailer or otherwise, needs to start creating the right conditions and ask themselves, “What is it all aiming to do?” They need to express that clearly, set goals, and ensure the following structures point in a sustainable direction:  

  • Operations: Identify tasks in your organization that can be fixed and trigger your suppliers to do more. Once you start solving these issues, you will see a positive effect and it creates a hunger for more.  
  • Products: The opportunities are endless when it comes to what is on your shelves. It is about designing your channel and products in the most sustainable way and thinking it through from start to finish. At Systembolaget, we have achieved our goal of providing more organic choices. It is now an overwhelming part of our offering.  
  • Climate-smart packaging: This area requires a bit of education. Not everyone thinks about paper wrap packaging for a top-quality wine, but now it exists, and our consumers are choosing this product.  
  • Relationship with suppliers: Do not come with finished solutions, work together with your suppliers instead. For example, regarding our climate-smart packaging — it was a co-creation and not a direct order of “We want this.” 
  • Social aspects: It is vital to have human rights policies and the best working conditions throughout the supply chain.  

Additionally, transparency and communication are essential when it comes to showing consumers the results of a sustainable cause to make them realize that they are making a difference.

 

What are the biggest challenges when it comes to maintaining sustainability at all levels of the supply chain?

Breaking things down into manageable changes that have an effect is a challenge. At the heart of that is traceability — that goes for whatever product we are talking about. Take clothing for example: What were the raw materials for this product and how was it produced? How were the working conditions? What about water consumption?  

In our value chain, traceability is needed from the start. When we make a promise together to produce a sustainable product, we must try our best to guarantee it. Therefore, it is a challenge to have consistent traceability and transparency throughout the value chain. Without traceability, it is difficult to track any progress or improvements. 

Another obstacle is having a common and right approach to ensure carbon emissions decrease and working conditions improve. We encounter so many challenges in different viewpoints, cultures, languages, and definitions of sustainability. This is why good communication is key in turning ideas into action.

 

In your opinion, how has sustainability changed the role of the CEO?  

The sustainability movement and requirements have changed the role of the CEO and C-suites more than anything else in the last century. This is because it requires CEOs to take responsibility for the whole value chain, society, and the carbon footprint left over time. It requires leaders to think long-term and look at many more aspects.  

Nowadays, it is much more challenging to communicate and lead. A CEO is now an informal leader of a much bigger group of people than their own company. I find myself leading local and international politicians, supply chain and transport operators, and raw material producers. I also spend much more time with NGOs and academics. To be deep and broad at the same time is a challenge — to have the required knowledge and to apply that in your own context.  

There is one more huge movement, which is the technology shift that can be a tool for companies to improve their sustainability practices. We need to learn, grasp, and use new technology together in the best possible way to achieve sustainability goals. However, I think the greatest change of them all is for leaders to be more visionary, and inspirational and drive their organization to a higher purpose.

 

What are the most effective tech adoptions in retail to build business resilience and flexibility? 

Digitalization and new techniques are a whole new toolkit and have many advantages if utilized correctly. With e-commerce, it has become easier to connect both your products and green initiatives to your customers. Information handling is helpful here via digital techniques. Personalized services are now made possible with technology to enhance customer experience. 

In addition, automation in retail creates an efficiency that saves money and reduces carbon emissions. It also helps with traceability as I mentioned earlier. With automation, we were able to create a sustainability platform to collect important information from our suppliers. 

A big retail trend made possible by technology is having an omnichannel presence. At Systembolaget, it is common now for customers to get information online and purchase what they want at our stores. Better yet, some customers even bring their own containers! There is a keener interest in purchasing locally which plays a big part in sustainability.  

 

*The answers have been edited for length and clarity.  

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Smart Building Trends in 2021: Making a Sustainable Future Possible

Cities take a huge toll on our planet, consuming 78% of the world’s energy and producing more than 60% of greenhouse gas emissions. These statistics have led the EU to invest €100bn into the European Green Deal, which aims to make Europe the first climate-neutral continent in the world by 2050. As the infrastructure and real estate sectors play a major part in city development, the construction of smart buildings is the most viable solution for long-term sustainability.   

What is the link between smart buildings and sustainability? The answer lies in the emerging smart building trends we are about to discuss.

 

Drivers for Smart Buildings  

 

According to the study, The Future of the European Built Environment, urban planning in Europe will be shaped by the following drivers:  

  • Urbanization – Rising urbanization will result in rurban (rural/urban) areas and the relocation of cities  
  • Climate change – A strong focus on climate-neutral buildings to slow down the negative impact of climate change  
  • Resource scarcity – From design to deconstruction, there will be a need for biobased alternatives and circular resources  
  • Changes in population – A growing aged population may decrease the availability of labor 
  • Focus on health and wellbeing – Buildings will integrate more green spaces and preventive health measures such as the removal of toxic components 

The study also predicts that buildings will embody these eight characteristics by 2050: 

  • Climate-resilient structures to withstand natural disasters 
  • Flexible buildings that are scaled to facilitate multiple functions 
  • Cognitive buildings that have automated internal climate management  
  • Focus on performance in terms of sustainability and energy use will determine the building’s value 
  • Enabling working and living in a 24-hour economy with combined working and living spaces as well as 24-hour connectivity 
  • Circular buildings consisting of reusable and biobased materials   
  • Energy-positive buildings that are efficient and free from fossil fuels  
  • Support a healthy lifestyle through healthy noise management, optimal temperature and clean air 

Several cities in Europe are already making strides to become greener and smarter. For example, Copenhagen is on the way to becoming carbon neutral by 2025 with business clusters powered by renewable energy and high R&D investments in sustainable sectors. In addition, Lahti was named the European Green Capital 2021 by the European Commission. The city aims to be carbon neutral in four years’ time, setting an example for the rest of Europe and bringing Finland closer to its target of achieving carbon neutrality by 2035.   

 

Smart buildings and COVID-19

 

As the world slowly recovers from the pandemic, we will see people returning to public and shared spaces to restart their professional and social lives. Therefore, living and working spaces need to be upgraded to safeguard our health and well-being. Facilities managers must equip their buildings with effective ventilation and air quality to minimize the spread of the virus.  

Besides that, touchless technology such as voice-activated elevators, hands-free doors, and phone-controlled door locks will lower the risk of touching contaminated surfaces. Smart buildings will also enable data collection on tenants, allowing building managers to easily identify and inform occupants if an individual has been infected with the virus.  

 

Trend #1: Predictive Maintenance in Smart Buildings

 

One way for buildings to become smarter and more sustainable is with the integration of predictive maintenance. It allows full cost optimization by recognizing equipment that needs fixing before it fails – reducing the amount of expensive last-minute repairs and renovations.  

Predictive maintenance also plays an integral role in running a building’s heating, ventilation, air conditioning, and refrigeration (HVACR) systems efficiently. This is especially important for buildings where continual and correct operations are critical, such as airports and hospitals.  

In addition to making buildings smarter, predictive maintenance also makes them more intuitive. These buildings have systems in place to automatically turn the lights on when people are detected in a room, adjust an area’s ventilation depending on its CO₂ levels, and regulate heating and air conditioning. Predictive maintenance allows for optimal energy efficiency, reliability, and comfort.  

In this IBM case study, the 24/7 Connected Services offering on IBM Cloud has helped KONE embed predictive maintenance in their elevators. With 24/7 Connected Services, elevator safety has improved with the reduction of equipment downtime, detailed information about equipment performance, and fewer faults.  

 

Trend #2: Smart Building Data Management 

 

IoT is an irreplaceable component in smart buildings to power data-driven digital services. These services are not only useful for building management but also for the overall tenant experience. Nowadays, tenants can download and utilize apps with features that maximize convenience and safety. Examples of features include navigating available parking spots, booking shared facilities, and receiving notifications on building updates.  

The complexity of the real estate landscape today with large numbers of stakeholders, growing portfolios, and siloed systems demands for a streamlined data-driven platform. That is exactly what Fabriq created to manage Google’s European real estate assets which include offices and data centers. The IoT platform not only tracks the consumption of energy and resources but also flaws in building operations. This resulted in fewer carbon emissions, lower costs, and efficient use of resources.   

The surge of smart technology in buildings will give rise to challenges such as data overload, difficulty in selecting the right data source, and issues with data verification. Therefore, it is imperative for building managers and owners to address these challenges to ensure the chosen smart technology works seamlessly and brings about attractive ROI over time. They must conduct thorough reviews of the building and its facilities, carry out interviews with potential occupants, identify data points and filter out important information, and streamline data verification techniques.

 

Trend #3: Cybersecurity for Smart Buildings 

 

As buildings become smarter, they naturally are at a higher risk of cyberattacks. Common vulnerabilities with smart building systems are minimal password protection, multiple connected devices and systems, maintenance from third-party companies, and security limitations with old buildings.  

Physical security is no longer enough to protect a building’s occupants. Building owners and managers must ensure effective cybersecurity measures are in place to steer away from cybercriminals. Products like the Desigo PXC4 and PXC5 controllers by Siemens are designed to help smart building managers prevent security breaches by having a strong protection policy, signed firmware, and encrypted communication with the embedded web interface.  

Fortinet also recommends the following steps for creating a robust security-first strategy – develop an overarching security plan, increase the visibility of smart building devices, and form strategic relationships with security technology suppliers.  

 

Trend #4: Smart Materials in Construction

 

The contribution of smart buildings to sustainability begins in the construction phase. Emission levels can be greatly reduced in the following areas: 

  • Materials: The use of fewer materials, more climate-friendly production of materials, and finding more sustainable alternatives.  
  • Transport: Introduce modes of transportation with less climate impact and increased electrification. 
  • Energy and heating: Increased energy efficiency through renovation, higher sustainable energy requirements, and fewer fossil fuels for district heating production. 
  • Waste: Buildings designed with increased flexibility, rebuilding, and material recycling in mind. 

Several technologies are already in the works to enhance and create smarter materials to withstand external changes. The materials used to construct a building plays a big role in how energy efficient and sustainable it will be in its lifetime. A good example is Helsinki’s Wood City – a sustainable urban hub with wood as its main construction material. The multi-story buildings of Wood City are made from fire-resistant Laminated Veneer Lumber (LVL) and timber, which is reusable, cost-effective, and low carbon.  

The demand for climate-resilient and sustainable projects in the form of smart buildings is expected to grow exponentially. Buildings in the future will continue to leverage smart technology to maximize their lifespans and mitigate the effects of climate change.

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Kathleen O. Mathisen, CHRO of Grieg Seafood: Anchoring Diversity & Inclusion in the Workplace

Diversity and inclusion (D&I) initiatives may have been paused due to the pandemic as companies went into survival mode. However, it is time for organizations to restart D&I efforts to reap benefits of a diverse and inclusive workforce. According to McKinsey & Company, the likelihood of diverse companies out-earning their competitors have only grown in the past five years. 

Grieg Seafood, a multinational salmon farming company headquartered in Norway, has been a strong advocate for human rights and diversity in the workplace, in addition to sustainable fish farming practices. We speak with Kathleen O. Mathisen, CHRO and Internal Communication of Grieg Seafood, about the importance of D&I, closing the gender gap and what it means to be a HR leader today.  

 

Diversity as a Core Focus Area

 

According to the Food & Agriculture Organization (FAO), fish catching is male dominated in most regions around the world. Offshore and deep fishing in ocean-going boats is delegated to male crews, while women work onshore carrying out skilled and time-consuming tasks such as processing and marketing catches.  

Mathisen says more women are found in the support function in the seafood industry. “Many women didn’t want to go into [the seafood] industry years ago because it was hard work,” she says. However, advances in automation and technology have drawn more women to the industry. Laborious tasks are now automated and simplified at Grieg Seafood with technologically advanced control rooms.  

Machine learning and AI has enabled remote feeding of fish which increases fish welfare and reduces fish waste. Digital farmers are now able to remotely feed seven million fish living in 12 farms, all from Grieg Seafood’s land-based operational center in Rogaland.  

“The key here is to balance and minimize the gender gap without losing the core competence that you have,“ Mathisen says.  

 

D&I as a Top-down Approach 

 

Once a culture of inclusion is fostered at the level of an organization’s decision makers, it will eventually trickle down to the management team and the rest of the employees. Mathisen stresses that “it’s about making those long-term plans, it’s about being strategic, it’s about anchoring the decision to minimize the gender gap at the top.’‘  

To start this process, Mathisen advises C-levels initiate a change of mindset and behavior. Management teams should look inward and analyze communication practices with their peers.  

“Are we different? Or are do we always agree? If we always agree, that should be a big question mark!” With that said, leaders should not be afraid of addressing shortcomings in the diversity department. It’s a matter of being bold and transparent in sharing information with their peers and employees. This will instill trust and confidence that C-levels will follow through with D&I initiatives.  

However, Mathisen is concerned that these initiatives are still at the drawing board and not fully implemented. ”It’s sad that we need to have those discussions – that gender balance is important, that diversity matters, because of course it matters!” 

 

A Competence-based Hiring Policy 

 

Grieg Seafood has a goal of increasing the percentage of female employees at Grieg Seafood to 40% by 2026. According to her, the 50/50 ratio of male to female employees should not be in the end goal, and is neither right nor wrong.  

Additionally, Grieg Seafood has a gender-based hiring policy in place where the organization tries its utmost to have a man and a woman as the two final candidates for a position. However, Mathisen says that that’s not always the case. Shortlisted candidates may be two women or two men. This is because at the end of the day, Mathisen stands behind a competence-based hiring process.  

”You shouldn’t be asking where people come from or [look at their] gender. You should look at competence, and that should be the final measurement when you’re recruiting people.” 

Occasionally, Mathisen comes across a disruptive candidate that challenges the status quo of the role’s requirements, pushing the organization to remove their biases and ultimately revise the job criteria to be more inclusive. There is a number of benefits when it comes to hiring based on competence such as consistency in the hiring process, accurate predictions of future performance and lower turnover rate. 

 

Creating a Culture for Sustainable Employability  

 

As sustainability is one of Grieg Seafood’s main focus areas, it’s no surprise that it extends to the company culture as well. Mathisen says that having sustainable habits at the workplace stems from the employees themselves. 

”It’s not a corporate initiative that starts at the top [that forces] people to [work and think in a sustainable way]. It comes from the people, and that has a totally different dynamic.” 

In an employability context, sustainability carries a different meaning. The right conditions need to be in place to ensure employees are happy, healthy and motivated. Capable employees who are motivated and passionate about their jobs stay at their company three times longer, generating long-term ROI for an organization. 

Mathisen reveals some of the ways Grieg Seafood creates an environment for sustainable employability: 

  • Listen to your employees: Pulse surveys are used to collect feedback from employees on how the company is doing and what can be improved. 
  • Provide training and development programs: Employees have access to a wide range of e-learning programs. Another pilot project has been taken on to provide more programs to employees so they can educate themselves.  
  • Instill trust and flexibility: Employees are treated fairly according to their needs. A working culture that is rooted in trust and flexibility is key to unlock employee engagement and productivity.  
  • Implement proper hybrid work policies and regulations: It is important to have planned meeting points, face-to-face onboarding sessions and revised insurance packages in the future. 

“If you have a good culture, you don’t have to [spend] a lot of money on branding,” Mathisen says. She adds that companies with a “walk the talk” mentality will attract and retain the right talent.  

“Young talent comes in all shapes and sizes. [People] will look for companies that have values they can identify themselves with.” 

Mathisen says that the CHRO role has become broader in the post-pandemic era. Today’s HR leaders must focus on the future of work for their companies — finding new solutions, pushing innovative strategies and ensuring team members feel connected in a hybrid work environment.  

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Lars Aasulv Løddesøl: Building Storebrand Into a Sustainable Pillar in Society

As a key player in the Nordic market for long-term savings and insurance, Storebrand has consistently pushed the narrative of sustainability for financial organizations. With leadership that is acutely aware of environmental, social, and economic aspects in decision-making, Storebrand aims to achieve business growth while contributing to saving the planet.

We sat down with the Group CFO, Lars Aa. Løddesøl talks about Storebrand’s journey towards sustainability, the challenges they faced, the roles of CFOs, and their commitment to companies.

 

Driving Towards The Path of Sustainability

 

Storebrand’s journey towards sustainable investment began more than 25 years ago with some leading investment pioneers who wanted to invest in a new field that should end up being very interesting for their customers and the company.

More importantly, Løddesøl iterated the fact that investing in sustainability was “the right thing to do” for any organization, more so for Storebrand as a life- and pensions company where their investments go beyond the next quarter or the next year, but rather 40 to 50 years ahead.

“We want to invest in the future, both for a better world and for a better return,” notes Løddesøl. This vision for sustainability has attracted many of its current employees who believe and share in the same purpose for creating a better future.

As a purpose-driven organization, Storebrand prominently communicates its driving force to “help create a future worth looking forward to”. Løddesøl points out that the company, at its core, pushes the vision of “delivering financial security and freedom by being a courageous pioneer and by leading the way in sustainable investments”.

Løddesøl believes that this helps motivate their employees and the organization as a whole to be leaders in sustainable investments and to become founding members of sustainable-focused groups such as Principles For Responsible Investment and Net-Zero Asset Owner Alliance.

 

Taking a Leap in Sustainability and Facing The Challenges

 

With strong management support since 1995, there was a senior commitment in Storebrand to develop a position as a leading company in sustainable investments on a global level.

As such, the leap towards sustainability for Storebrand was not an arduous jump as the culture was ingrained early on within the company’s DNA.

Add to the fact that a number of board members have strong sustainability competencies requiring Storebrand to be operating in an environmentally conscious manner, the motivation was there on both sides to be sustainable on all levels.

Transitioning into a green company, however, does come with its challenges. One of the early challenges that Løddesøl recalls is the criticism and skepticism on whether sustainable investments would give competitive financial returns. As time has passed and data has improved, there is now little doubt that sustainable investments give better risk-adjusted returns.

A more recent challenge for Storebrand is to differentiate itself from “greenwashing” in the competitive market. To overcome this, Løddesøl points out the importance of using and capturing data on sustainability to be able to objectively and transparently report on objectives and progress in sustainable investments.

 

Adding “Value” To The Role of CFO In Sustainability

 

The role of the CFO has always been to ensure stable financial growth in a company, but for Løddesøl, the term chief financial officer doesn’t accurately reflect the roles he takes in a sustainable-focused business.

Løddesøl believes a more accurate term for CVO (Chief Value Officer) would better represent the role as “values are broader than the short-term financials but is also part of the financials.”

In terms of defining the focus of CVOs, Løddesøl explains that hitting the triple bottom line of profit (financials), people (employees and customers), and the planet (environment and climate) should always be the main factors in making business decisions.

Nevertheless, the role of CFOs as guardians and guarantors of a company’s financials still remains important for Løddesøl.

“As a CFO, I have an important role of having dialogues with regulators, financial markets, investors, and many other stakeholders, to communicate why sustainability is good for shareholders, customers, society at large, and the world.”

 

Competitive Edge in Sustainability and Zero-Sum Game

 

In a competitive market such as the financial industry, staying ahead of the competition requires great planning and a clear vision.

For Løddesøl and Storebrand as an organization, maintaining the competitive edge with sustainability comes from “purpose-driven employees, excess returns, and as part of our contract with society, our mission as a company in society.”

“Companies can no longer survive in the long term just by bringing in the extra dollars the next quarter,” notes Løddesøl. “It is now a requirement to take a responsible role in the market and contribute to society, which in turn will bring financial values.”

While Løddesøl believes that companies should be adopting sustainable efforts to ensure long-term financial returns, he also points out how sustainability is not a zero-sum game.

“In order to save the world from the climate crisis, we need to do the right thing ourselves and also motivate and engage with others to do the right thing.”

Being a relatively small Norwegian company in a global context, Løddesøl is aware that Storebrand can’t save the world alone. However, he hopes that Storebrand’s contributions can push other companies to commit to sustainable efforts and contribute to making the necessary action to make the green shift before it is too late.