WEF Names New Sustainability Champions; DJSI Lead for Siemens Again
The World Economic Forum (WEF) launched the report by The Boston Consulting Group (BCG), which focused on a group of 16 exemplary companies – New Sustainability Champions – that are creating unconventional and profitable solutions that positively impact economic growth and enhance overall sustainability in their regions. And Siemens has been ranked the most sustainable company in the Diversified Industrials category for the fourth time in a row in the Dow Jones Sustainability Index (DJSI).
New Sustainability Champions Share Three Characteristics
SustainableBusiness.com News (16 September 2011):
The World Economic Forum (WEF) launched a new report this week focused on a group of 16 exemplary companies that are creating unconventional and profitable solutions that positively impact economic growth and enhance overall sustainability in their regions.
The report, prepared with The Boston Consulting Group (BCG), highlights innovative business practices of these “New Sustainability Champions” operating in emerging markets.
According to the report, these companies exhibit three broad sets of characteristics:
Proactively turn constraints into opportunities through innovation
The New Sustainability champions are finding ways to overcome lack of material resources, customer education or customer financing. For instance, Shree Cement developed the world’s most energy-efficient process for making its products to overcome a lack of low-cost energy. Similarly, Broad Group, a large Chinese producer of air chillers, uses waste heat from buildings to power its range of non-electric air-conditioning units.
Jain Irrigation of India uses dance and song to explain the benefits of drip irrigation to local communities. And Kenya’s Equity Bank is expanding its presence among small rural farmers through a mobile phone banking platform.
Embed sustainability in their company culture
The New Sustainability champions are defining bold visions for sustainability, integrating that vision into operations and engaging their workforces in the process. Sekem, an Egyptian organic food producer, is using a profit-sharing methodology to reclaim desert land, produce food for the local market and reinvest in the community.
Masisa, a wood products manufacturer in Chile, developed a balanced scorecard on sustainability that measures performance in all dimensions, including non-financial indicators. Natura, a Brazilian cosmetics company, trains and rewards its managers for identifying socio-environmental challenges and turning them into business opportunities.
Actively shape their business environments
The New Sustainability Champions actively share their own business environment, partnering to achieve mutual goals and influence policies and standards. Brazilian organic sugar producer Grupo Balbo wants to turn the entire sugar industry into an organic sector and is collaborating on the creation of Brazil’s first national organic certification system.
New Britain Palm Oil, operating in Papua New Guinea, worked closely with local NGOs to smooth negotiations involving land rights – a critical issue since conflicts with suppliers and landowners are the largest barriers to palm oil operations in the region.
“The New Sustainability Champions are more than just symbols. Their overall performance matters because emerging markets in total are set to contribute more than three-quarters of global growth by 2025 – and because those markets will likely feel resource scarcity most,” says Knut Haanaes, Partner and Managing Director, Boston Consulting Group, Norway.
The 16 New Sustainability Champions are:
Broad Group, People’s Republic of China
Equity Bank, Kenya
Florida Ice & Farm, Costa Rica
Grupo Balbo, Brazil
Jain Irrigation Systems, India
Manila Water Company, Philippines
MTR Corporation, Hong Kong SAR
New Britain Palm Oil, Papua New Guinea
Shree Cement, India
Suntech, People’s Republic of China
Woolworths, South Africa
Zhangzidao Fishery Group, People’s Republic of China
The New Sustainability Champions will be showcased at the Annual Meeting of the New Champions 2011 in Dalian, People’s Republic of China, from September 14 -16. The Meeting is held in close collaboration with the Government of the People’s Republic of China and with the support of the National Development and Reform Commission (NDRC).
Under the theme Mastering Quality Growth, over 1,500 influential stakeholders will convene in Dalian to gain strategic foresight on key economic, industry and technological developments that are reshaping consumer behavior, business models and financial markets.
Siemens again No. 1 in sustainability
Company awarded top ranking in Dow Jones Sustainability Index
Siemens has been ranked the most sustainable company in its industry for the fourth time in a row. In the Dow Jones Sustainability Index (DJSI) – the sustainability rating established by Dow Jones and SAM – Siemens has again taken first place in the Diversified Industrials category, which includes companies like 3M, General Electric, Toshiba and Thyssen Krupp.
Out of a possible 100 points, Siemens received 90 – its highest overall rating to date and a further improvement over last year’s result of 87 points. The company has now been honored by the DJSI twelve times in a row for its sustainable activities.
“By capturing the No. 1 position once again, we’ve proven just how rigorously the company is oriented to sustainability and how our employees put sustainability into practice on an everyday basis. For us, this is a competitive advantage,” said Barbara Kux, the Siemens Managing Board member responsible for sustainability.
In addition to the economic and social dimensions, Siemens is focusing intensively on the expansion of its Environmental Portfolio, emissions reduction and the efficient use of natural resources.
The company planned to generate revenue of $33 billion AUD (€25 billion) with its Environmental Portfolio in fiscal 2011. With revenue from the Portfolio totaling $37.3 billion (€28 billion) in fiscal year 2010, Siemens not only achieved this target a year earlier than planned; it considerably exceeded it. The company now wants to generate more than €40 billion in revenue with green technologies by the end of fiscal 2014.
Siemens. Innovation for generations.
Siemens commenced operations in Australia in 1872 and in New Zealand in 1876. Siemens is now recognised as of one of the most reliable and trusted brands in the region. With well-established businesses in both Australia and New Zealand, Siemens is a diversified technology-based solutions provider specialising in the areas of water, energy, environment, healthcare, productivity, mobility, safety and security.
At the end of fiscal 2010 (September 2010), Siemens in Australia and New Zealand achieved AUD2.2 billion in sales with 2800 employees. Globally at the end of fiscal year 2010, revenue from the Environment Portfolio totalled EUR28 billion, making Siemens the world’s largest supplier of ecofriendly technologies. In the same period, the company’s products and solutions enabled customers to reduce their CO2 emissions by 270 million tonnes. This amount equals the combined annual CO2 emissions of New York, Tokyo, London and Berlin. Siemens in Australia and New Zealand is part of the Siemens global network of innovation which operates in 190 countries throughout the world.