www.fccsingapore.com

 April -  nº 01

Focus on Asia
Why going green makes sense for Asian leaders? Leadership through Innovation in Sustainability – an opportunity for Asian businesses Asia has developed from being the manufacturing plant of the world to becoming a major driver for global economic growth. The Asian growth trajectory is projected to continue, resulting in noteworthy economic, political, social, resource and environmental challenges. However, the burning question we need to address is – can Asia afford, for the next 50 years, to grow its level of consumption at the same rate as Western nations have done for the past 50 years? Deloitte recently reported that that if every one of the new consuming middle class ‘were to adopt the historic consumption patterns of the average citizen in the United Kingdom, three planet Earths would be required to sustain them – five if they were to live like the average North American.’ Asian business leaders will have to face the consequent challenges. A lack of solutions to these challenges will have a devastating effect on the rest of the world. At the same time, Asian business leaders need to assess if the Anglo-American or European model is suitable for Asian countries, societies and businesses, and to find new ways to mitigate poverty as well as provide directions for a sustainable way of life. It is a unique opportunity for Asian leaders to turn these challenges into extraordinary opportunities to drive solutions that could potentially be exemplary models for the rest of the developing world to emulate. Solutions in sustainable design, sustainable manufacturing, and innovations in clean tech and clean energy can point to a future where growth and raised living standards are possible without neglecting the environment challenges that so far have gone hand-in-hand with economic progress. Fostering Innovation and Creativity With the rise of the middle class, business leaders in Asia are looking to create their own success stories of products or services through a focus on R&D, design, innovation and brand strategies. However, substantial investments into R&D, design and brand do not always guarantee market success. Millenials base their purchase decisions on image and aspirational values. Increasingly social issues also play an influential role for these new consumers. A great rise in population, particularly of the middle class in Asia, coupled with this new consumer behavior is bound to transform Asian businesses. We will see them eventually moving away from emulating Western businesses to spearheading new innovations for Asia and the world. Insight into the methodologies used by established design firms, paired with the disruptive power of creativity and innovation can help to formulate winning strategies. These methodologies of design thinking and systems design have the potential to arrive at solutions that never lose sight of economic, market, social, psychological, behavioral, cultural, ecological and environmental challenges or situations. At the same time they can provide aesthetically pleasing and quality-of-life enhancing products or services that can help counter problems such as climate change and ecological challenges. Driving an Environmentally Friendly Development Agenda Product development processes are continuously maturing. The value of design, innovation and its methodologies are increasingly recognized at every executive level. All of this has urged business leaders to seriously consider the impact of their businesses on the life of their customers – not just from a technical or a financial point of view, but also from that of sustainability and social issues. Sustainable design, clean energy and clean technologies have become the new hot buttons for many countries and businesses alike. For countries in Asia, investment in clean energy and technology has started to solicit a more important place in the development agenda. According to the 2010 Thomson Reuters’ Cleantech Handbook for Asia Pacific, the ‘Asia Pacific Region (APR) will be the largest Energy Market and clean technology Market in the world, by 2030.’ Research also indicates that – just for renewable energy alone, China and India will lead the renewable energy market; by 2016 China’s renewable energy market will be US$53 billion, India’s US$14.4 billion. The large numbers of investment into clean energy and clean technology is a necessary consequence in anticipation to the rise of the middle class. Without a doubt, the rising middle class will be the growth engine for Asia Pacific in the years to come. The increase in the availability of consumer credit, however, and of general consumption will in turn increase the hunger for energy and the need for energy generation. For business leaders in Asia the imperative conclusion and message is clear and simple – - to reduce energy, material and water consumption of offices and manufacturing processes - to design for disassembly and recycling - to comply with Restriction of Hazardous Substances Directive (RoHS, adopted by the European Union in 2003) and Waste Electrical and Electronic Equipment Directive (WEEE, introduced by the UK in 2007). While this might seem like a lot to ask for, it is the foundation for innovation of new processes that lead to the development of greener products, improve the lifestyle of people, reduce carbon footprint or waste and help consumers understand energy consumption and waste. The list of opportunities here is extensive, showing plenty of reason for Asian businesses to be in the position to lead if their leaders are able to form their organization’s corporate culture to be open for these new opportunities. Leveraging Asia’s Cultural Diversity Builds Opportunities for Sustainability Innovation In Asia it is not uncommon to find diverse cultural situations, not only in business but also at the ethnic, national and regional levels. As innovation is best achieved through an open dialogue of different opinions and ideas, this diversity of the Asian markets and culture has the potential to be a petri-dish for nurturing innovation. Organizational cultures need to be primed to accept innovation and thus and one of the biggest challenges for Asian business leaders is to embrace the regional cultural diversity as well as establish an organizational culture that is conducive to innovative products or services. Business leaders in Asia need to be aware a) that any sized company’s success is rooted in what its organizational culture stands for, and b) that a guiding framework of behavior, norms and values can lead an organization to becoming a high-performing business. Affecting changes to a corporate culture – with the aim to provide meaningful innovation to society at large – need to start with listening to the customer, and understanding consumers’ needs and requirements. Luckily, it has become very easy today to be attentive and to listen to the experience customers have with companies. There are myriad possibilities for connections between companies and its customers, more than ever before, through technological advancement in interconnectability, social networking and cloud computing. Conclusion The opportunities are vast for the true Asian leader to guide businesses to significantly contribute not only towards their own commercial success but also the success of the region as a whole. Today, the market-moving innovation and cultural dynamism is what builds a country’s or a company’s prominence. It will definitely be challenging to navigate an increasingly complex, multi-polar environment with geo-political challenges, economic and cultural differences. However, Asian business leaders are in a good position to step up and steer organizations toward a more mature and dynamic economies through innovations in clean tech and sustainable design. More than ever, there is a role to be played in Asia to build authentic, clear, consistent, strategic and solid brand stories for the innovation of products and services to enable all of us, collectively and consciously, to contribute to a better world. Source: 1 March 2012, Green Business Times
Survey: 69% of businesses to lift green spending Most businesses plan to boost their commitment to sustainability this year, despite the tough economy, a new global study has revealed. A report study by MIT Sloan Management Review (MIT SMR) and The Boston Consulting Group (BCG) has found that 69% of firms expect to step up their investment in and management of sustainability this year. Only 26% plan no change, and just 2% say they will cut back on their commitment. The study, carried out for the second year, is based on a survey of 3,100 corporate leaders across all industries, and 30 in-depth interviews with experts. It found that a two-speed landscape is emerging, with a gap between sustainability “embracers”—those who place sustainability high on their agenda—and non-embracers or “cautious adopters,” who have yet to focus on more than energy cost savings, material efficiency, and risk mitigation. Embracers are significantly more confident about their competitive position than non-embracers, with 70% saying they believe their organizations outperform industry peers. By contrast, only 53% of the cautious adopters described themselves as outperformers, and 14% admitted to lagging behind peers. In addition, nearly three times as many embracers (66%) than cautious adopters (23%) said that their organization’s sustainability actions and decisions have increased their profits. “What’s fascinating is that our findings depict a business landscape in general that’s tilting hard toward where the embracers already are,” said Michael Hopkins, editor-in-chief of MIT SMR and a co-author of the report. “So the embracers have handed us a kind of crystal ball. Their insights and behaviors suggest a blueprint for how management practice and competitive strategy will evolve.” The report said improved brand reputation was perceived as the biggest benefit of investment in sustainability, while the auto sector was send as the industry for which sustainability was most critical – 80% of car executives in the sector said sustainability-related strategies were essential. “Most companies—whether currently embracers or not—are looking toward a world where sustainability is becoming a mainstream, if not required, part of the business strategy,” said Knut Haanaes, a BCG partner and managing director and co-author of the report. “Those not already putting sustainability at the heart of their business will need to do so in the near term.” Source: 25 March 2012,Green Channel Staff
Green jobs to grow up in India by 60% in 2012 With 'global warming' becoming a major concern world over, hiring of green professionals is likely to grow by up to 60 per cent this year, say experts. "Companies are today taking steps to become environment-friendly and are hiring green professionals, who can help them reduce energy consumption. "The demand for environmental professionals is expected to go up by 55-60 per cent this year, as firms are raising their spending on creating clean technology, reducing emissions and wastage and regulating use of natural resources," Elixir Consulting Executive Director Kanika Vaswani said. Green job is mainly defined as work in agricultural, manufacturing, research and development, administrative and service activities that contribute substantially to preserving or restoring environmental quality, she said. An environmental professional reviews the direct and indirect impact of products on the ecology and devise strategies to protect the atmosphere, she added. Green jobs can either be white or blue-collar in sectors like agriculture, manufacturing, R&D administration and service activities like IT and finance. With growing demand for green buildings, the real estate sector is likely to emerge as one of the biggest recruiters of green professionals, she said. Elixir has observed a trend of hiring environment professionals in the FMCG and retail sector as well. Companies are offering attractive salaries to green professionals, which varies, Vaswani said adding that at middle-level, the package is usually at Rs 12 lakh and Rs 35-40 lakh at senior positions. Echoing the view, executive search firm GlobalHunt Director Sunil Goel said the hiring of green professionals began a decade ago, but paced up 5-6 years back, when many industries faced mandatory regulations to have environment experts and green department to manage waste and hazard. In 2012, he said, hiring will increase by 30-40 per cent for green professionals and this growth is likely to remain consistent for next five years. "With attractive salary packages, interest towards this profession is growing constantly," he said. Generally, these professionals are hired at all levels and get compensation between Rs 5-7 lakh, depending on experience, he pointed out. Executive search firm Symbiosis Management Consultants CEO Vinay Grover opined that usually these professionals hold masters degree (M.Sc, M.Tech) in Environmental Engineering by IIT's, state owned universities and other couple of AICTE approved colleges as well. People with Civil and Chemical Engineering background also become environment professionals, he said. The power, oil and gas, chemical sectors, he said, are the traditional employers for the environmental professionals, however, with the growing concern towards the ecology, the trend is also visible in FMCG and IT. "In India, there aren't many green professionals available in the market and seeing it as coveted career, more and more people are likely to pursue it as a career option," he said. This year, he opined that the hiring for such professionals would see a phenomenal increase to the tune of 35-40 per cent, since the base is very low... Source: 8 January 2012, The Financial Express
Green building: a sustainable concept on the rise! The two upcoming integrated resorts in Singapore, which open in the first quarter of next year, are not planning to gamble with the environment. In fact, they have spent millions of dollars on green technologies and sustainable building concepts to conserve resources. It has been a roller coaster ride for the environment, and climate change is a real threat. So companies, like Singapore's two integrated resorts, are striving for greener practices. Resorts World Sentosa, for instance, transplanted 900 trees affected by construction work. It is now replanting them - along the streets of Hollywood and New York - within its Universal Studios theme park. The resort also has Singapore's largest solar installation, that can generate over 500,000 kilowatts per hour of energy a year. Noel Hawkes, vice president, Resort Operations, Resorts World Sentosa, said: "(With regards to) the solar power, we reckon we can save half a million Singapore dollars easily on electricity bills. "We also have a very interesting ETFE roofing system over many of the al fresco dining areas of the resort, as well as in the Universal Studios where people are queuing, and this reduces the amount of sunlight by almost half. "And we couple that with an eco-cooling system, which we have developed; it is not air conditioning, but it is cooling and it costs one-third of the cost of air conditioning." The ETFE plastic roofing will shelter about 70 per cent of the pedestrian walkways at the resort. Another cost saving of over S$160,000 a year will come from a lagoon, which will harvest rainwater to be used for irrigation. Meanwhile, Marina Bay Sands resort is also doing its part - by recycling paint from previous projects, as well as recycling construction waste. When completed, guests staying in the 2,500 luxury rooms at the three hotel towers can also play a role. Thomas Arasi, CEO, Marina Bay Sands, said: "We have spent S$25 million on an intelligent building management system, and what that would do is that it would automatically record the customer's needs and energy saving patterns. "On the remote control in our guest room, there will be an eco button that you can hit and it will just take things up a notch and hopefully you will not feel it." Marina Bay Sands said it has also invested a substantial amount of money on the construction and operation of a massive chilled water plant to be located just off its third hotel tower. This will be done on a cost sharing basis between the resort and public entities. The plant is expected to be ready in late 2010. Marina Bay Sands said it will provide chilled water to cool the resort as well as new buildings in the surrounding districts. Observers said the use of chilled water could help lower air conditioning costs by up to 20 per cent. Source: 11 December 2009, Channel News Asia
FlexiWorks: a Milestone in Singapore! A government initiative towards an enhancing Workplace Environment/Motivations and to also reduce Carbon footprints Flexi-Works! is an initiative by the Singapore Workforce Development Agency (WDA), in partnership with the National Trade Union Congress (NTUC) and Singapore National Employers Federation (SNEF) to help companies hire new workers on part-time or flexible work arrangements. Flexible work arrangements include part-time working, staggered hours, flexi-time, job-sharing, telecommuting, and alternative work schedules. Flexi-Works! offers a grant of up to $100,000 to support a company’s efforts in implementing flexible work arrangements. The programme has been extended to run from 1 April 2010 to 31 December 2012. (more) Source: MOM