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Tradelanes THE MAGAZINE OF AGILITY ISSUE 29. VOL.1, 2018 SUSTAINABILITY The business case (again) Driving efficiency & innovation Fair labor and worker protection Emissions and the supply chain

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Page 1: THE MAGAZINE OF AGILITY ISSUE 29. VOL.1, 2018...2018/07/29  · Tradelanes THE MAGAZINE OF AGILITY ISSUE 29. VOL.1, 2018 SUSTAINABILITY The business case (again) Driving efficiency

TradelanesT H E M A G A Z I N E O F A G I L I T Y I S S U E 2 9 . V O L . 1 , 2 0 1 8

SUSTAINABILITYThe business case (again)Driving efficiency & innovationFair labor and worker protectionEmissions and the supply chain

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The green warehouse& solar energyQuest for zero-net energy is proving a tough ask inthe Middle East where air conditioning accounts for30 percent of energy costs and solar energy has beenslow to get established.

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Sustainability: The Business Case (Again)Companies are finally putting sustainability at thecore of their strategy and operations after years ofdeep skepticism and an obvious disconnect betweenrhetoric and action. Considerations about social andenvironmental impact are shaping every facet ofcorporate activity. At the same time, there is adecided shift in emphasis as social, labor andgovernance imperatives come into sharper focus.We take a broad look at where sustainability ideasand practices are today – and what it means tocustomers, noting that transportation is the secondlargest emitter of greenhouse gases.

Page 3

Also in this issuePage 22 Shell Eco-marathon for ultra-energy-efficient vehicles. Page 29 Sustainable garden in a harsh, arid environment.Page 30 Third year of Agility’s Africa photo competition.

Corporate DNAAn expert argues that sustainability as an intrinsic part of corporate DNA drives operational efficiencyand innovation, and delivers a range of benefitswhile also mitigating risk. “Sustainability is aboutapplying a systems and design thinking lens totraditional processes and products.”

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Fair LaborAgility’s fair labor program in the Middle East was agroundbreaking initiative more than 10 years ago. Ithas helped drive the company’s efforts to ensureworker protections and to call on other businesses todo the same.

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Emissions and thesupply chainA look at various Agility initiatives to reduce CO2

emissions including a pathway agreement withMaersk to cut emissions by 15 percent per containerby 2020.

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agility.com

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Growing evidence suggests that businesseseverywhere are putting sustainability at the coreof their strategic thinking, planning andoperations after decades of disconnect between

their stated objectives and actions.

Sustainability is finally being embedded into businessactivity. One reason is that corporate data and academicresearch have begun to show a return on sustainableinitiatives and practices, particularly at companies willing tobroaden their definition of Return on Investment and adoptlonger time horizons.

Another reason is the growing clamor from a spectrumof stakeholders – consumers, B2B customers, insurers,institutional and individual investors, regulators,community leaders, watchdog groups, employees and jobcandidates – for companies to demonstrate that they areresponsible actors.

The sustainability movement is maturing. Considerationsabout social and environmental impact are shaping nearlyevery facet of corporate activity – nowhere more than thesupply chain.

“Customers used to think about things in isolation likegreening a warehouse, measuring CO2, or getting morevisibility into their suppliers,” says Mariam Al-Foudery,Agility Group Chief Marketing Officer, who overseessustainability and corporate social responsibility.

“Now more customers are looking at the whole supply chain and identifying practices that are connectedand mutually reinforcing, things that have impact acrossbusiness units and operational locations over the long-term.”

3

SustainabilityMaking the BusinessCase (Again)

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Best practices for sustainability are evolving asrapidly as any aspect of business, driven by theavailability of new technology and the growingurgency for companies to demonstrate that they

are effective environmental stewards and positivecontributors to society.

Here are some key areas where logistics providers andtheir customers need to focus.

• TraceabilityDo you have upstream supplier visibility? Do you do supplier assessments and benchmarking?

• LaborIf migrant workers are in your employee mix, are youcertain that they aren’t being exploited by laborbrokers and unscrupulous recruiters, a problem that isparticularly problematic for companies that hire fromIndia, Nepal and East Africa?

Have you continued to focus on living and workingconditions? Are you confident you have transparencyinto subcontractors? Have you created effectiveworker-grievance mechanisms? Are you educatingand training workers on their rights?

• EnergyWhen you expand your truck fleet, are you addingCNG fueling stations and LNG vehicles?

• PackagingIf you are a consumercompany, what aboutdimensional weightpricing?

• WarehousingHave you looked atautomation and cleantech in cargohandling andwarehousing?

• Port selectionAre you routing shipments through “green terminals”that manage and contain possible pollutants andpolice for invasive species?

• Logistics digitizationAgility is among those using advanced algorithms toevaluate multiple scenarios and create optimal planswith the least environmental impact. Multi-echelonInventory Optimization is another tool available.

• Data and measurementAre you capturing, sharing and analyzing data withyour logistics provider so you can get real-timefeedback to optimize operations and make sure youare conserving, recycling, recovering and reusing asmuch as you can?

Mariam Al-Foudery, Group ChiefMarketing Officer, Agility

Best Practices and Tough Questions

In a 2017 survey by EcoVadis and the HEC Paris businessschool, 97 percent of procurement officers surveyed listedsustainability as one of their top five priorities. Seventy-fivepercent of responding companies said they were usingsustainability and corporate social responsibility criteriawhen selecting new suppliers.

“Sustainable procurement is no longer a nice-to-have –it’s an integral business function responsible for protectingand improving brand reputation, driving revenue andmitigating business risk,” says Pierre-Francois Thaler, co-CEOof EcoVadis, an independent group that provides businesssustainability ratings and analysis.

Not everyone is as enthusiasticYossi Sheffi, director of the MIT Center for Transportation &Logistics, says sustainability advocates have succeeded inframing the issue as one of “profits versus planet” or“societal good versus corporate evil.” He says that narrativeignores the role of businesses and their supply chains toprovide jobs and deliver improved living standards. Sheffiargues that there is a difficult balance to strike and that thereal friction is between those demanding environmentalstewardship and people who seek jobs and affordable goods.

“Companies are championing their environmentalcredentials in glossy reports, speeches and media

interviews,” Sheffi writes. “At the same time, however, manywill admit, off the record, either that they do not believe inthe need for this effort, or more commonly, that currentinitiatives do not meet any reasonable cost-benefit test evenif global warming is real and the danger acute.”

Better processesOthers insist there is mounting evidence that sustainabilityadds real value.

“Embedded sustainability efforts clearly result in apositive impact on business performance,” according to aHarvard Business Review article co-authored by TensieWhelan, director of the Center for Sustainable Business atNew York University’s Stern School of Business. (See Q&A onpage 10).

Whelan and her co-authors argue that sustainabilitydelivers significant cost savings from increased operationalefficiency and that it drives companies to innovate bycreating better processes, new products and equipment, andimproved working conditions.

When sustainability is part of corporate DNA, it can“engender enthusiasm from employees, customers, suppliers,communities and investors,” the HBR authors conclude.

The Sustainable Business Council says there is ampleresearch to show that sustainability lowers the cost ofcapital, results in better operational performance, and has apositive effect on stock price. Sustainability is a major factorin building and protecting corporate value, the SBC says.Consulting firm McKinsey has estimated that the value atstake from sustainability concerns is as high as 70 percent of

earnings before interest, taxes, depreciation and amortization.“Forty years ago, the bulk of a company’s value linked

directly to its tangible assets,” the SBC says. “Now onlyabout a fifth relates to a company’s financial performanceand physical assets. The rest reflects intangible assets likebrand, intellectual property, and whether a business has asocial license to operate.”

Agility innovationLike its customers, Agility is taking aggressive steps to getgreener. It is working with carriers to slash CO2 emissions,rethinking warehouse construction and management,piloting use of solar energy in building cooling, andinvesting in energy-recapture technology for trucks.

Mindful of its social impact, Agility pioneeredprotections and standards for workers in the Middle Eastmore than a decade ago and has been a leader in sharingbest practices and publicly advocating for strongerprotections. In 2017, Agility introduced its first stakeholderpolicy, laying out goals and commitments to protect theenvironment, safeguard workers rights, improvecommunities where it operates, and be responsive to theneeds and concerns of a variety of different interests.

“The biggest challenge for us and most logistics providersis on the customer side,” Al-Foudery says. “Customers wantstrategies, tools and technology to help them meet theirsustainability goals.” One such tool gives Agility customersthe ability to compare and optimize the environmentalimpact and cost of individual shipments using a nearly

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5Sustainability Sustainability4

WHAT IS SUSTAINABILITY? Sustainable businesses try to meet the needs of the present

generation without compromising the ability of future generations

to meet their needs. They focus on good treatment of employees,

impact on the environment, impact on local communities, and

business relationships with suppliers and customers.

When sustainability is partof corporate DNA it can

“engender enthusiasm fromemployees, customers,

suppliers, communities andinvestors.”

BY 2035: THE CHANGING ENERGY PICTURE • Fossil-fueled cars will require 40 percent less fuel to go

one mile.

• Energy intensity – the amount of energy required to produce

a unit of GDP – will be half what it was in 2013. (Traffic

congestion can cost as much as four percent of a country’s

GDP).

• Demand for electricity will grow twice as fast as energy

demand for transport.

• 77 percent of new electrical capacity will come from wind

and solar; 13 percent from hydro. (Installed cost of solar has

fallen by 70 percent since 2009).

• The population will have grown by 1.5 billion.

Source: McKinsey Sustainability & Resources Productivity

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infinite variety of shipment types, routes, load sizes andconfigurations, and other factors.

Zero-impact targetA leading apparel powerhouse approached Agility with thegoal of building sustainability into the design andmanufacturer of its vast, globally sourced product line.Agility worked with the customer to create an informationand standards framework and to build measurement andperformance targets into its supply chain.

The apparel customer’s objective is a low/zero-impact,closed-loop supply chain: dramatic cuts in CO2 emissionsand energy per unit of manufacture; facilities running 100percent on renewable energy; 0 percent waste; doubling ofsupply chain efficiency every 18 months to two years.

“That can be scary, but customers with big, ambitiousgoals are sometimes the easiest to work with because they’retotally committed. They will take risks in order to becomeleaders,” Al-Foudery says. “They’re ready to innovate andbreak from established practices and willing to rewardpartners who help them achieve their goals.”

Sustainability efforts by consumer products companiesand retailers typically get more visibility than those of B2Bcompanies.

Supply chain priority“The typical consumer company’s supply chain creates fargreater social and environmental costs than its ownoperations, accounting for more than 80 percent ofgreenhouse-gas emissions and more than 90 percent of the

impact on air, land, water, biodiversity, and geologicalresources,” McKinsey says. “Most of the environmentalimpact associated with the consumer sector is embedded insupply chains.”

Ethical Corp. estimates that there are about 400sustainability labels, including Fairtrade, which got its startin 1992 but is being overtaken by alternatives. Sainsbury’s,the UK supermarket chain, is among those that have shiftedfrom the third-party Fairtrade certification, creating its own“Fairly Traded” label.

Unilever and Nike are recognized leaders onenvironmental and social initiatives. Campbell Soup workswith farmers to optimize fertilizer use and improve soilconservation. Walmart gives suppliers incentives for theirsustainability performance. Alarmed by oceanic pollution,Nestle, Procter & Gamble, Coca-Cola and Unilever areamong those searching for alternatives to plastics from fossilfuel polymers. Target, Keurig and others are pushing

6 Sustainability

L aurence Fink, CEO ofBlackRock, the world’s largestinvestor, astonished corporateleaders everywhere in January

2018 with a letter telling them it wastime they accepted responsibility formore than profits.

Fink called for a “new model ofshareholder engagement” in whichcompanies plan and demonstratehow they make positive contributionsto society. He put corporate leaderson notice that BlackRock, which hasan estimated $6 trillion undermanagement, would be watchingand making its own investmentdecisions based on whethercompanies demonstrated that theywere serving a “social purpose.”

Fink’s letter was a directrepudiation of nearly 50 years ofaccepted wisdom among businessleaders. In 1970, Nobel economistMilton Friedman crystallized whathas become a boardroom tenet: “Thesocial responsibility of business is toincrease its profits.”

But BlackRock, Fink explained,sees governments “failing to preparefor the future, on issues rangingfrom retirement and infrastructure

to automation and workerretraining.” Consequently, it is up tobusinesses to “respond to broadersocietal challenges,” he wrote.

Sustainability advocates cheered.Fink’s letter “has been more than 100years in the writing,” said Jack O’Brien,managing partner of an ethicalpurpose agency that, coincidentally,is named ONE HUNDRED.

The problem, O’Brien said, is thatcompanies exposed by scandals areoften the same ones with celebratedCSR programs. “These companieshad CSR initiatives sitting on theperiphery of corporate leadership,”he said. “Corporates (need) to look athow such ethical purpose can bebrought to the center of their business,rather than resting on the sidelines.”

The Shareholder Letter that Shookthe World

To prosper overtime, every

company mustnot only deliver

financialperformance, butalso show how itmakes a positive

contribution tosociety.

HOW IMPORTANT ISSUSTAINABILITY/CSR FOR YOURPROCUREMENT/SUPPLY CHAINORGANIZATION?Sustainability & CSR: Important or criticallyimportant

HOW BIG OF A FACTOR ARE THEFOLLOWING BUSINESS DRIVERS FORYOUR SUSTAINABLE PROCUREMENTPROGRAM?Main factors driving Sustainable procurementpractices

Source: 2017 HEC/EcoVadis Sustainable Procurement Barometer

Alarmed by oceanicpollution, Nestle, Procter &

Gamble, Coca-Cola andUnilever are among those

searching for alternatives toplastics from fossil fuel

polymers.

“Society is demanding that companies,

both public and private, serve a social

purpose. To prosper over time, every

company must not only deliver financial

performance, but also show how it makes

a positive contribution to society.”

“Without a sense of purpose, no

company, either public or private, can

achieve its full potential. It will ultimately

lose the license to operate from key

stakeholders.”

“The time has come for a new model of

shareholder engagement …”

“… (You) must also understand the

societal impact of your business as well

as the ways that broad, structural trends –

from slow wage growth to rising

automation to climate change – affect

your potential for growth.”

“Companies must ask themselves: What

role do we play in the community? How

are we managing our impact on the

environment? Are we working to create a

diverse workforce? Are we adapting to

technological change? Are we providing

the retraining and opportunities that our

employees and our business will need to

adjust to an increasingly automated

world? Are we using behavioral finance

and other tools to prepare workers for

retirement, so that they invest in a way

that will help them achieve their goals?”

EXCERPTS FROM LARRY FINK’S ANNUAL LETTER TO CEOs

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8

suppliers of industrial plastic items such as crates and trashbins to use more “post-consumer” material.

Worker rightsThe safeguarding of worker rights and improvement inworking conditions is often the most difficult issue on thesustainability agenda.

Five years after the Rana Plaza factory collapse that killed1,100 garment industry workers in Bangladesh, independentassessments report improvement in factory safety andmonitoring by the government and local companies. Buttwo organizations representing western brands and retailersrecently said local authorities still aren’t prepared to assumeresponsibility for policing safety standards.

Worker rights can be a contentious issue even for globalleaders such as Nike, which developed many of the bestpractices now used by apparel brands and manufacturers.Nike has voiced objections to advocacy groups positioningthemselves as third-party auditors, arguing that there is aconflict of interest for groups that are both campaigning and

auditing. For their part, advocacy groups say many audits gotoo easy on brands and manufacturers.

But failure to tackle environmental and social risks canhave punishing consequences: apparel companies thatcontracted with Rana Plaza garment makers fell from lists ofmost-reputable companies in the aftermath of the tragedy;Aussie GrainCorp reported that drought cut its graindeliveries by 23 percent and led to a 64 percent drop in 2014profits; Unilever estimated that it loses 300 million euros ayear as worsening water scarcity and declining agriculturalproductivity contribute to higher food costs.

The business case for sustainabilityForum for the Future, an international sustainability non-profit, says the companies set to benefit are those that can“capture the less tangible benefits as well as direct financialsavings, for example, the clear reputational benefits of theinitiative.”

The business-case numbers “are much ‘softer’ thandecision-makers are used to,” the Forum says. As a result,“companies get stuck in a vicious cycle: they want a businesscase before giving permission to go-ahead with a project, butthe information to build a business case can only begenerated from the experience of going ahead.”

George Mason University professor Gregory Unruh saysit’s time to look at the business case for sustainability a bitdifferently. “Multi-dimensional sustainability value is justhard to fit into a discounted cashflow analysis,” he writes.

Despite being hard to measure, Unruh writes, “investorsare now realizing that sustainability performance feeds thelong-term bottom line. And that’s causing managers toquestion traditional business thinking. So instead ofspending time building a perfect business case, many arepursuing business model innovation experimentation,taking a page from Silicon Valley start-ups. It is throughexperimentation and innovation, not spreadsheetprojections, that viable sustainable business models emerge.”

Researchers say companiesthat prioritize sustainabilityare using it to drive innovationin product reformulation,

equipment redesign and purchase,process modification, waste recyclingand other areas. Notable breakthroughson the sustainability horizon:

• IMPERIAL COLLEGE LONDON post-grad students have developed arecyclable, biodegradable concretesubstitute that uses abundant desertsand with half the carbon footprintin place of increasingly scarce beachand river bed sand. The substance,called Finite, can be used to makeglass, computer chips and otherproducts, in addition to concrete.

• PLENTY UNITED is one of many“indoor farming” startups. Thecompany is growing lettuce, arugula,herbs and other crops in a renovated51,000-square foot warehouse near

San Francisco, using LED lights. Thewarehouse will yield up to 3 millionpounds of leafy greens a year forlocal tables. Others are also lookingat giant warehouses, old factoriesand repurposed shipping containers,equipping them with sensors thatmeasure temperature and moisture,and fitting them with automatedsystems that pump in water andnutrients, and use LED strips toprovide energy with no need forsunlight or soil. Plenty Unitedemploys a sponge-like plastic as asoil substitute and pumps inmineral-infused water.

Indoor farmers claim they canproduce 150 times more lettuce persquare foot as an outdoor farm, withjust 1% of the water consumption.Their operations reuse water, avoidpesticides, and reduce fossil fuelsneeded to power tractors and deliverover long distances. They tend to beheavy on power consumption

because of the LED lights andclimate-control systems.

• CONVENTIONAL FARMERS continueto incorporate technology into theirwork, experimenting with fieldsensors, geospatial imagery andanalytical processing to boost yields.McKinsey says farmers usinggeospatial imagery can measuredown to “microfields” of 14 squaremeters or less and better manageirrigation and fertilizer use. Thesame technology is being used bylarge commodity buyers to identifythe most environmentally suitablecrops based on climate, proximity tomarkets, global crop-yieldperformance and other factors.

• GRAVIKY LABS, an MIT Media Labspin-off based in Bangalore, Indiaand Singapore, has developed adevice that captures particulatesemitted through motor vehicletailpipes and industrial smokestacksto manufacture ink and ink-basedart products. Captured soot isprocessed to remove harmful metalsand carcinogens, and to leavebehind carbon pigment. “Manyblack inks are already made usingcarbon black, which is mostlyproduced by burning heavypetroleum products. That meansGraviky’s process could have a two-sided impact on pollution andgreenhouse gases,” Fortune magazinesays. Gravick Labs hopes to fit itsdevice to bus and taxi fleets incountries such as India, whereemissions standards lag behind thoseof Europe and the United States.

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Sustainability

It is throughexperimentation and

innovation, not spreadsheetprojections, that viable

sustainable business modelsemerge.

Using the ‘S’ Word toDrive Innovation

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T ensie Whelan, formerpresident of the RainforestAlliance, is a clinicalprofessor for business and

society at New York University’s SternSchool of Business and director ofNYU’s Center for SustainableBusiness.

Q: How do you make thefinancial case for sustainability? Sustainability drives operationalefficiency, innovation, employee,

customer and supplierengagement, as well asmitigates risk, amongother benefits. All thesetangible and intangiblebenefits can bemonetized, but generallyare not, partially becauseaccounting does not dealwell with intangiblesand partially becausethis is all so new, thecorporate financedepartment has not yetcaught up.

Q: Is the case conclusive,especially in the absence ofbetter ROI tracking bycompanies? The case for cost-based saving throughoperational efficiencies is very clear

11

Sustainability isabout applying a

systems anddesign thinking

lens to traditionalprocesses and

products.

Sustainability as part of

Corporate DNAQ&A WITH EXPERT TENSIE WHELAN

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Sustainability as part of corporate DNASustainability as part of corporate DNA

20181 20181

12 13and has been demonstrated bycompanies from Walmart to 3M.Sustainability – meaning balancingenvironmental, social, and economicgoals – has led to cost savings throughreductions in waste, energy and waterfor thousands of companies. The socialside is also beginning to demonstratepositive financial impact – Walmart’sincreased pay and career path for storeemployees reversed the downwardspiral of negative customer experiencesin store, increasing sales.

Q. Is there a penalty for beinglate? For waiting to see how thisplays out and allowing yourcompetitors to go throughpainful trial and error? There will be a penalty as this is nolonger niche – it is mainstream – andthe impacts are no longer in the future – climate change is disruptingsupply chains now. Laggards will be

penalized, if not through negativeimpact on their reputation, throughhigher operational risk and worsemargins. For example, coffee farmersare experiencing lower productivityand more disease due to climate change. But changes in sustainabilitypractices can reduce the negativeimpacts considerably. Companies likeNespresso that are actively engagingwith their farmers to help them withthese issues will ensure they have ashort- and long-term supply of qualitycoffee.

Q: You’ve used the word“embedded” to describesustainability in some corporatecultures. Why is that important,and what are the differencesbetween companies where it isembedded and those where it is not? Traditional CSR and some approachesto sustainability treat the issue asperipheral to core corporate activities.In those cases, the business strategydoes not include sustainability issuessuch as climate change as a disrupter,and thus the impact of sustainabilityinitiatives will be limited. Unilever’sbusiness strategy IS their SustainableLiving Plan and it has driven significantsustainability improvements, but alsooutperformance by their “brands withpurpose,” higher margins than theircompetitors, and an enviable positionas one of the most searchedprospective employers on LinkedIn.

Q: How does sustainability driveinnovation? Sustainability is about applying asystems and design thinking lens totraditional processes and products. Youprovide different design inputs (e.g.reduction of water, improved laborpractices) to create products and servicesthat reduce negative impacts andprovide a better product for customers.Nike has embedded sustainability intoinnovation, for example, and that hasdriven changes in how they produceall their products (reducing

environmental impact and costs) aswell as led to the creation of a $1 billion plus line of product – FlyKnit sneakers.

Q: What about its importance inattracting talent? Much of the CEO activism we haveseen recently is more for the benefit ofemployees than customers. Companiesknow that millennials are looking forcompanies who share their values andare committed to making the world abetter place. As with Unilever, they willattract the best and brightest if theyembed purpose and sustainability atthe core of their business.

Q: You’ve spoken of the need to figure out ways to “monetize”sustainability efforts withincompanies. What does thatmean, and why is it important? Most companies are not tracking thefinancial benefits of their sustainability commitments, otherthan cost savings such as energy usereduction. Talent recruitment,engagement and retention, forexample, should be tracked in linewith a company’s focus on purposeand sustainability. It is possible tomonetize the contribution ofsustainability to human resourcemetrics – SAP and PwC have tracked it,for example, and have foundsignificant financial returns.Innovation in processes is another area– companies are innovating newprocesses in response to sustainabilitycommitments. Domtar, a pulp andpaper company, developed a fertilizerfrom the waste of two plants that hadbeen deposited in landfill previously –a nice circular solution that savedthem money and also saved thefarmers money as the fertilizer cost was lower.

Q: How has thinking aboutsustainability been changing? Companies have been on anevolutionary path, starting with aniche approach, e.g let me try makinga green product, to a broader riskmanagement approach, e.g. I need tomanage for reputational andoperational risk in my supply chain, toa mainstream approach, e.g. this needsto be core to my business, to aninnovation approach, e.g. this createsnew business opportunities.

Q: How does the calculus differfor B2B companies, vs. thoseselling to consumers? Brands in industries such as consumerpackaged goods have more pressure onthem in terms of reputational risk. Butthey are passing that down throughthe supply chain, so B2B companiesthat are leaders will be able to achievepreferred supplier status and createbetter relationships with their clients.That said, B2B salespeople are notalways well-trained in the sustainabilityattributes of their products and thusdon’t feel comfortable talking aboutthem. That will need to change.

Q: What do you see happeningin emerging markets anddeveloping economies? In my former role as president of theRainforest Alliance, we worked withcompanies all over the world andfound a wide variety of engagement.There were market leaders like Tata in

India and Klabin and Fibria in Brazilthat were far more innovative thanmany US and European companies.And then there were companies incomplete denial.

Q: What do you make of therecent letter from BlackRock’sLaurence Fink to CEOs? Do yousee it as a watershed moment?Will it change anything?I agree with Larry Fink that the short-term shareholder focus has done a lot

of damage to capitalism, people andthe planet and we are facing areckoning. We need more investors tostand up and require that companiesmanage for all material stakeholdersand ESG issues. And we need to delinkexecutive compensation fromdelivering on high quarterly marginsto the detriment of R&D, employeesand the environment.

Q: EcoVadis says companies areshifting focus towardsocial/labor and business ethics,and going into “maintenancemode” or decreasing investmenton the environmental side. Doyou agree? No, I don’t agree. I think companies inthe US have been more focused on theenvironment to date, and they are nowplaying catch up on the social side, asthey should. There are newenvironmental commitments everyday – McDonalds just announcedrecycling goals in restaurants as well as

a commitment to 100 percent recyclablepackaging, for example. This is a notan either/or proposition. Companieswill need to perform well on material,social and environmental metrics.Right now they need to figure out theirposition on compelling issues thathave been ignored for too long, suchas employee pay and gender equity.

Q: What else is happening onthe social and governance sidethat’s intriguing to you? First, we had CEOs publicly state theircommitment to reducing greenhousegas emissions with science-basedtargets when President Trump pulledthe US out of the Paris Accord onclimate change. Now CEOs arestepping up on gender issues,immigration, firearms, and so on. Aswe have a vacuum in governmentalleadership on social issues, business istaking the lead. My conversationspoint to personal commitment bythose CEOS, and an acute attention toserving their employees who are askingfor executive leadership.

Q: What are you looking for inthe next five years? Ten years?What’s going to surprise us? Just as the march by students in theUnited States about firearms (whichtook place on March 25 2018) isunexpectedly changing the dialogueon firearms policy overnight, and aswith #metoo and #blacklivesmatter(movements), I think we will see agreat reckoning on labor (better pay),climate and water issues in the US andglobally in the next ten years. And,hopefully, we will stop lookingbackward, and, in looking forward,unlock ingenuity and optimism tomake transformative changes in howwe produce, consume and valueproducts and services.

Right now companies need to figureout their position on compelling

issues that have been ignored for toolong, such as employee pay and

gender equity.

Coffee farmers are experiencing lowerproductivity and more disease due toclimate change. But changes insustainability practices can reducethe negative impacts considerably.

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More than a decade ago, Agility began takingaggressive steps to protect the rights of drivers,warehouse employees and other workers whomigrated in order to get jobs.

Agility is the largest logistics company in the Middle East, anarea where third-country nationals have historically beenvulnerable to exploitation by recruiters and to abuses on the job.

While international agencies have moved to promote fairlabor practices and supply chain transparency, often afterprodding by non-governmental watchdog groups, Agility hasbeen at the forefront of efforts to ensure worker protectionsand call on other businesses in the region to do the same.

One of Agility’s first steps was ensuring a basic livingwage for migrant workers. Agility also implemented

procedures to prevent common labor abuses, like confiscationof passports, withholding of pay and travel restrictions. Agility’sapproach to identifying and correcting fair labor practiceshas been in use since 2009. Since 2011, Agility has beentraining all levels classes of employees about those standards.

Agility’s commitment to fair labor goes all the way to thetop. The company’s fair labor program is sponsored byAgility CEO Tarek Sultan, who receives regular updates on itsprogress from the Corporate Social Responsibility (CSR) team.“Agility is committed to providing an environment whereemployees’ human rights are both respected and protected.

15

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Fair LaborTHE MIDDLE EAST PIONEERS

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We have high standards on fair labor; it’s an essential part ofthe ‘Agility Way’ of doing business,” Sultan said.

Agility created its fair labor program voluntarily – not inresponse to government or customer mandates – because thecompany believes in protecting its employees and contractworkers. Agility isn’t winning business because it has a top-tier fair labor program, but it could certainly lose business ifthose standards slipped, says Frank Clary, Agility’s CSR director.

Clary says the program is both a moral and legalimperative, and a company’s success in resolving fair laborissues hinges on its ability to discover them – and speakopenly about correcting them.

Agility’s practices are evolving to ensure that all possibleviolations come to light. Agility rigorously enforces the fairlabor policy with comprehensive monitoring and auditsconducted by third parties. Geographic areas where theAgility workforce includes the most vulnerable population –migrant workers – get audited most frequently. The auditprocess includes random employee and vendor interviews,and tours of workspaces and housing. When any issue isidentified, Agility prescribes corrective actions and issuestimelines for achieving appropriate standards. In the case ofcritical issues, corrective actions are taken immediately.Customers requesting audits get the results directly.

The first phase of the Agility audit program wasconducted in the Middle East, followed by roll-outs in Asia-Pacific. Ten years ago, when these audits began, manyviolations were discovered. Now, thanks to trainingprograms, they have decreased.

Agility’s goal is to educate 100 percent of its workforceabout the fair labor policy. The program has been conductedhistorically with on-site training sessions. The company iscreating an online training program to reach a wideraudience. There are two versions of the online program: aversion designed to help employees understand their rightsand learn how to report concerns, and a separate, morerobust program directed at Human Resources professionalswho will need to investigate those concerns.

Agility plans to share these training resources with othercompanies. “We want to engage to help the broader businesscommunity succeed in managing these issues,” Clary says.

There’s no quick solution to manage fair labor issues ona global scale, but every step forward helps. The Council onForeign Relations (CFR) estimates there are 40.3 millionpeople currently enslaved in the world, and the problem ismost prevalent in “impoverished countries and [in] thosewith vulnerable minority communities.” Modern slaveryexists primarily for financial reasons: it’s an economic crime,according to Kevin Bales, a professor of contemporary slaveryat University of Nottingham in the UK. The InternationalLabour Organization says that slavery generates $150 billionfor traffickers annually. Even if companies have proceduresin place to protect their workforce, how can they safeguardagainst unethical subcontractors who prioritize financialgain above fair labor?

Agility has taken a leadership role on the issue when itworks with multinationals and government organizations inthe Middle East. Working with Human Rights Watch, Agilitylearned how to engage engineering and constructioncompanies in ways that prevent labor issues. The approachinvolves setting expectations upfront, writing contractsmore carefully to demand fair labor standards, and insistingthat subcontractors open up for audits. Agility also hasworked on fair labor with the World Economic Forum andBusiness for Social Responsibility, which has given Agility aplatform to talk about the importance of the issue withothers in the logistics industry.

A gility created its Target Zeroprogram to identify andeliminate health, safety,security and environmental

(HSSE) risks. Agility workplaces,operating with near-zero HSSEincidents, are increasingly focused onnew Target Zero goals that reduceoperational emissions, fuelconsumption and waste per ton, inaddition to finding ways to userenewable energy.

In EcoVadis’s 2018 sustainabilityratings, Agility GIL scored in the top4 percent for environmental issuesand top 16 percent for fair businesspractices.

To improve its EcoVadis rating,the company intends to work evenmore closely with air and oceancarriers to compile and assess criticalenvironmental impact data from itsshipments.

As a logistics provider, Agilityoperates with the help of carriersand other suppliers, particularly inthe movement of freight. Its goal isto hold suppliers to the same highstandards as its own operations andemployees. Agility gains visibilityinto supplier operations through avariety of methods, includingongoing monitoring and evaluationof Service-Level Agreements (SLAs),audits and supplier qualificationsurveys. A brief look at those practices:

SLA MonitoringAgility works with customers to buildtheir requirements for sustainablepractices into Service-LevelAgreements, then to monitor itssuppliers’ commitment and

performance in meeting thoserequirements.

AuditsAgility conducts audits and quarterlybusiness reviews of its suppliers.These are managed at the country-level within the jurisdiction wherethe supplier resides. Audits canreveal gaps where standards aren’tbeing met, as well as illuminate newopportunities for sustainabilitypractices.

Supplier Qualification SurveysFirst conducted in 2010, the Agilitysupplier qualification survey is a toolto vet suppliers. At its most basiclevel, the survey determines asupplier’s legitimacy (what is thesupplier’s tax ID, revenue andnumber of employees, for instance).It includes questions aboutworkplace safety, supply chainsecurity and whether the supplierhas credentials to handle sensitive ordangerous cargo such as ammunitionand hazardous materials.

Additionally, it poses questions tohelp determine whether the suppliershares Agility’s values and is ascommitted to sustainable businesspractices and fair labor as Agility.Suppliers that demonstrate acommitment to sustainable practicesand meet Agility’s requirementsmove to the top of Agility’s preferred vendor list.

Agility rigorously enforcesthe fair labor policy with

comprehensive monitoringand audits conducted by

third parties.

Fair Labor Fair Labor16 17Target Zero Drives Improvement at Agility

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Customers, governments andindustry groups continuepressing for huge reductionsin supply chain emissions,

mainly in transportation. Road trafficaccounts for most of CO2 emissions, 73 percent. Air traffic is 12 percent;ocean shipping 10 percent; pipelineleakage 3 percent; rail traffic 2 percent.

The maritime shipping industry hasbeen aggressive in its attempts to tacklethe emissions problem. In April, theInternational Maritime Organization(IMO), a United Nations body, saidgreenhouse gas emissions frominternational shipping should beslashed by at least 50 percent by 2050from 2008 levels. CO2 emissions are tobe eliminated entirely by then, theIMO said.

Agility represents the freightforwarding industry on the steeringcommittee of the Clean Cargo WorkingGroup (CCWG), an internationalcoalition of logistics providers, oceancarriers and retailers committed toimproving the environmentalperformance of maritime containertransport. CCWG carriers handle 85percent of containerized globalshipments. This year, the CCWG isexpanding its scope to include theairfreight industry.

In 2016, Agility teamed up withanother member of the group, Maersk,the world’s largest container shipoperator. The goal: to cut CO2

emissions by 15 percent per containertransported on Agility shipments by2020. Agility and Maersk are reducingemissions by shifting cargo to morefuel-efficient ships, optimizingnetworks, routes and sailing schedules,and integrating emissions data intotheir regular business information flow.

A few of the ways Agility is helpingcustomers lower emissions:

• Modeling shipping variables with aproprietary tool that allows them to design the most efficient, low-carbon supply chain possible (seepage 20).

• Measuring and reporting CO2

emissions monthly. Aggregatedemissions can be integrated intomonthly, quarterly and annualbusiness reports and can beconfigured based on origin anddestination locations, customerhierarchy of priorities, or othercriteria.

• Offering pre-shipment CO2

estimates on shipafreight.com, thenew self-service online portalpowered by the Agility network.

• Providing CO2 emissions estimateson the Agility Android and iPhonemobile application, an easy-to-usetool even for users who aren’tshipping with Agility.

• Reporting electricity, fuel and waterconsumption, and waste generationvia a proprietary application thatconverts consumed electricity into

19IncreasingUrgencyEMISSIONS AND THE SUPPLY CHAIN

The goal: to cut CO2 emissions by

15 percent per containertransported on Agility

shipments by 2020.

IMPROVING TRUCKEFFICIENCYIndustrywide, there are a number of

modifications and upgrades that can

cut fuel use and make vehicles more

efficient. All are expensive:

• Electric cabs – switches engine

settings to electric power when

truck is idling.

• Skirts – heavy plastic or rubber

wheel covers that cut down on drag

and improve fuel economy.

• Streamlined truck and trailer design

– some involve wing-like tails.

• Automatic transmissions.

• Wider tires, lighter treads –

equipped with sensors to indicate

low tire pressure.

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T ruckmakers Navistar, Daimler, Paccar, Volvo andothers, along with engine-maker Cummins, areplacing bets on various forms of new technologyin a drive to boost fuel efficiency and cut down

on emissions.

Truck and engine manufacturers are tinkering with newengines, trailer designs and other innovations. Somewant to break completely from the combustion engineand develop fleets of fully electric trucks, severalprototypes of which are being road-tested. Others aretrying to improve the efficiency and emissions output ofdiesel-fueled vehicles.

Agility has invested in Hyliion, a retrofit add-on thatinvolves installation of an intelligent drive axle on atrailer. The system, installed in 60 minutes, usesregenerative braking to capture and save power when thetruck is slowing, then reuses that energy to provide

power when the truck is climbing hills. Depending onthe topography and normal fuel economy of the vehicle,the Hyliion system can reduce fuel use by 30 percent andcost by $1,300 a month.

There are 1.7 million tractor-trailer trucks in theUnited States alone. The average heavy-duty truck getsonly six to seven miles to the gallon. Some estimate thatan extra mile per gallon would be the equivalent ofremoving 200,000 of those trucks from the road each year.

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A gility customers are working with the company’ssupply chain specialists to use a new modelingtool that allows them to design the most efficient,low-carbon supply chains possible.

The tool enables Agility specialists to work with shippersto create models using a nearly infinite number ofvariables and combinations – origins, destinations,routes, schedules, inventory requirements, shippingmodes, INCOTERMS, packing density, load configuration,vehicle types, emissions and costs. Soon, the samecapability will be available via a mobile app that willallow Agility and its customers to collaboratively designoptimized, low-impact supply chains on the spot.

Calculations can be done quickly and are presenteddashboard-style. “We can help our customers ‘scale-up’cost savings and efficiencies across their supply chains,”says Frank Clary, Agility’s director of Corporate SocialResponsibility.

The holy grail for many shipping customers has beena granular view of carbon footprint estimations in supplychain segments. That breakdown – or disaggregation – iswhat allows them to identify problem areas whereemissions reduction and other sustainability efforts canhave the most impact.

The Zaragoza Logistics Center in Spain says: “Take for example, an operation that involves a contracted fleet of trucks as well as a company’s own vehicles.Managers can calculate emissions levels based onparameters such as the fuel consumption of each vehicleused, the cost of fuel, and the electricity consumed inloading and unloading facilities. Different scenarios canbe simulated to determine the most cost-effective

measures for shrinking the carbon footprint.”New tools such as Agility’s offer that piece-by-piece

view. “We help them look at each route segmentindividually so that together we can find the solutionthat is most effective and least costly and has the lowest

environmentalimpact,” Clary says.

AGILITY TOOL:

The Cutting Edge of Supply Chain Design

21Increasing Urgency

Truckmakers are placingbets on various forms ofnew technology to boost

fuel efficiency and cutemissions.

20

CO2 emissions using InternationalEnergy Agency standards. Theapplication provides real-timereports on emissions and feeds datainto regular reports to customers.

• Converting local fleets in placessuch as Thailand to compressednatural gas and training drivers to

reduce idling time and cut speeds tolessen environmental impact. Wealso recycle tires, batteries and othertruck components.

• Calculating origin and destinationtrucking emissions, in addition tointernational ocean and air shippingemissions.

• Working with CarbonTrust toprovide data that enables customersto offset their CO2 emissions.Emissions from shipments typicallyare reported on an “at least” basis,meaning they offer an estimate of“at least” what has been emitted ona journey.

Road-Testing Sustainable Technology in Trucks

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23

T he checkered flag waves and sleek racecars starttheir journey around the track. But this isn’t yourstandard auto-racing experience. This is the ShellEco-marathon, an annual program of competitions

that challenges student teams from universities around theworld to design, build, test and compete their own ultra-energy-efficient vehicles.

Shell Eco-marathon programs are held annually in Asia, theAmericas and Europe, and consist of two competitions. Firstis the Shell Eco-marathon Mileage Challenge in whichstudents compete to see whose car design can go the fartheston the least amount of fuel. Second is the Shell Eco-marathon Drivers’ World Championship, which combinesthe proven energy efficiency of the design team’s vehiclewith the speed, skill and strategy of their driver in a race tosee who can cross the finish line first.

There are two classes of vehicles in the Mileage Challenge:cars in the “Prototype” class are designed for maximumefficiency, while the “UrbanConcept” class features vehicleswith more practical designs. All cars feature electric batteries,hydrogen fuel, or internal combustion engines.

Teams compete in regional competitions in Asia(Singapore, March 2018); the Americas (California, April2018); and Europe (London, July 2018); with the flagshipevent and finals taking place in London this summer.

For the third year in a row, Agility is the official logisticsprovider of the Shell Eco-marathon. In this role, Agilityprovides student teams with technical advice required totransport their vehicles safely, including best practices forpacking and following customs procedures and requirements.

Agility will also provide the studentswith safe and affordable options to shipvehicles and related equipment to andfrom the event locations. For studentswho choose to ship their cars withAgility, teams on the ground willmanage receipt, handling and finaldelivery. They will also provide on-sitelogistics support to all teams.

The Singapore event took place in

March with Team Semar Urban UGM Indonesia from theUniversitas Gadjah Mada in Indonesia winning first place inthe UrbanConcept category. The top three UrbanConceptfinishers from each regional event will compete at theDriver’s World Championship at London’s Olympic Park,each vying for the title of “world’s fastest, most efficientdriver.”

Shell Eco-marathon is about using innovation andcollaboration to deliver mobility solutions that will contributeto vehicles going farther with less energy– a vision that fitsin nicely with Agility’s environmental goals. Agility has andcontinues to invest in energy-efficient technologies,including Hyliion, an add-on system that brings theadvantages of hybrid energy to tractor-trailers, and CargoXand Homoola, which use technology to bring efficiency toroad freight. Meanwhile, Agility’s corporate venture arm,Agility Ventures, partners with start-ups championingtechnologies that can help build faster, more secure, and

more sustainable supply chains. Agility has a globally recognized

corporate social responsibility (CSR)program, which includes environmentalsustainability. It has received a silverrating from EcoVadis, an independentsupplier sustainability rating agency,and tracks fuel and energyconsumption and related CO2 emissionsin its top operations.

THE RACE TO ULTRA-EFFICIENCYShell Eco-marathon

Agility has and continuesto invest in energy-efficient technologies,including Hyliion.

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drains a lot of energy, especially in theMiddle East. “Agility is looking for newair conditioning solutions, and it is apriority because of the extreme heat,”Saab says.

It’s too early to say there’s a direct,viable alternative to conventional airconditioning, but Agility is findinggreen workarounds. Warehouses can beoriented to avoid direct sunlight andmaintain low thermal heating, andUV-blocking skylights can be installedto reduce heat up to 85 percent.What’s more, water-cooled chillers canbe used instead of air-cooled chillers toreduce electric demand.

Simply defined, a “sustainablewarehouse” is one that makes littleimpact on the surrounding environment(including land, water sources andwildlife), draws modestly from externalpower sources and is a comfortableenvironment for employees to work in.

Though typically located on thefringes of communities – closer to air-and seaports or major truckingthoroughfares – warehouses can have amajor effect on a community. Theygenerate jobs, but they can also drawsignificantly from the power grid andcontribute to pollution. Adopting

sustainable practices within awarehouse not only benefits thecommunity, but also makes thewarehouse less expensive to operateover time. A warehouse generating itsown power is also more stable; it’s notsubject to power grid interruptionsthat compromise security systems orcold storage systems for special products.

For its part, Agility is making stridestoward ZNE. “We’re working towardputting photovoltaic panels on ware-house roofs to generate our own powerand electricity,” Saab says. Any efforttoward environmental sustainabilitymust be sustainable for the business aswell, and that’s the current challenge.“We measure our energy consumptionto pay the bills,” Saab says. But in thefuture, Agility can analyze thosemeasurements to identify areas whereenergy use could be reduced – or evenproduced on warehouse premises.

E ven without the pressure ofgovernment regulations,businesses are greening theirwarehouses to lower their

costs, reduce resource use and, inmany cases, pursue the goal of zero-net energy (ZNE).

A 2010 mandate in Europe is pushingcompanies there to achieve ZNE statusfor commercial buildings by 2020. Tobe ZNE, buildings must create onsiteenergy equivalent to the amount ofenergy they use.

In the Middle East, Asia and Africa,where most of Agility’s warehouses are

located, ZNE is still a distant objective. Michel Saab, CEO of Agility Logistics

Parks, Operations, says the two mostexpensive warehousing costs are lightingand air conditioning. Ed Klimek of KSSArchitects notes that lighting accountsfor nearly 30 percent of the energy usewithin a distribution center.

Finding a sustainable solution forlighting is easier than solving theproblem of exorbitant airconditioningcosts. “Most of what can be done isalready done at Agility,” Saab says.

Skylights that provide natural lightare an option for warehouses wheretemperature-controlled goods aren’t

stored. At Agility warehouses, LEDlights have replaced typicalincandescent and fluorescent bulbs.Energy Star estimates that LED lightsare 90 percent more efficient thanincandescent lights. Another cost-savings measure is to connect lightingto a motion-sensor system that willturn off lights automatically inunoccupied spaces. Agility has thecapability to operate a similar systemby customer request, but there aretechnical constraints in spaces wherelight fixtures are embedded in 14- to16-meter high ceilings.

Air conditioning is expensive and

20181 20181

25

The GreenWarehouseQUEST FOR ZERO-NET ENERGY

The Green Warehouse

The two mostexpensive

warehousing costsare lighting andair conditioning.

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27Governments with cheap, abundant supplies of

crude oil and natural gas have long subsidizedelectricity and fuel prices. Standard photo-voltaicsolar systems have proved vulnerable to searing

desert heat and frequent sandstorms. System installationcosts have been too high, and paybacks too long and uncertain.

Today, after a prolonged period of low oil and gas prices,Gulf countries are reducing or eliminating subsidies toconsumers and commercial customers. Ambitious nationaleconomic diversification plans call for energy conservationand mandate cuts in consumption, along with blueprints fordevelopment of green communities and cities deriving mostif not all of their energy needs from renewable sources.

Technology advanceThe introduction of revolutionary new high-vacuum solarthermal systems – a robust and highly efficient means forgenerating thermal energy – is proving to be a game-changer.Solar thermal is ideal for the intense Gulf heat and oneparticular type of high-vacuum technology is capable ofoperating with minimal output losses even after severesandstorms.

Air conditioning for Agility’s corporate headquarters inSulaibiya, Kuwait is provided by a solar-driven coolingsystem that ran automatically and unattended for over 365days with 98 percent reliability. In addition to deliveringconsistent and reliable energy output, the system, powered

by a solar field manufactured by TVP Solar, SA of Switzerland,contributed 43 percent of the points necessary for the newbuilding’s LEED Sliver certification. Highest output is achievedfrom 10 am to 3 pm each day in a climate where outsidetemperatures can reach 54 degrees centigrade (129°F),supplying 70 percent of the facility’s required cooling load.

InvestmentAgility has invested in TVP Solar and is introducing thetechnology to commercial and industrial customers, saysSteve Lubrano, CEO of Alternative Energy Solutions, anAgility affiliate.

Lubrano says the solar-thermal system and itscomponents are relatively maintenance-free and areintegrated into existing buildings. Despite blowing sand anddust, users need not worry about precision cleaning ofpanels because of their remarkable efficiency and ability tocapture both direct and diffuse light.

Agility’s new Kuwait HQ incorporates a TVP Solar Air Conditioning(SAC) system.

SolarA FRESH LOOK AT SOLAR IN THE OIL-RICH GULF

Despite its promise,solar energy hasbeen a tough sell inthe Gulf.

Agility has invested in TVPSolar and is introducing the

technology to commercialand industrial customers.

Solar

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The technology is becoming even more attractive aselectricity costs rise and solar-thermal payback periods fallfrom a previous six to nine years to a more feasible three tofive years.

Interest is expected to intensify as Gulf governments lookto expand and “green” their energy production capabilities

to ensure supplies for new industry and for energy-intensiveuses such as water desalination.

“Oil-dependent countries have come to realize that ifthey’re burning it, they can’t sell it. That might not be aproblem today, but it will be down the road,” Lubrano says.

“So we’re seeing a sea change. Kuwait, UAE, Saudi Arabiaand others have implemented energy mandates and havemade plans for cities powered almost exclusively byrenewable sources. We’ve gone from a lack of interest towow, ‘You mean you can provide energy and reduceelectricity demand at the same time?’ ”

When implemented at scale, Lubrano says, “Yes, we can.”

28 29Sustainable kitchen

Sustainable Kitchen AT THE REMOTE END OF THE SUPPLY CHAIN

Port of SudanRed Sea

ABYEI

Oil-dependent countrieshave come to realize that ifthey’re burning it, theycan’t sell it. That might notbe a problem today, but itwill be down the road.

In the harsh, arid demilitarized zone between Sudan andSouth Sudan, Agility’s GCC Services team of 105 expatsand local staff supplies international peacekeepers withfood and bottled water that is trucked hundreds of miles

from the Port of Sudan to the mission in Abyei, Sudan.

Desperate for a quiet respite and something fresh to eatin a conflict zone, GCC personnel built a compostingoperation to turn kitchen waste into fertilizer and beganbringing seeds back to Abyei when they returned fromleave. The result is a lush, pesticide-free garden of herbs,vegetables and fruit.

The Abyei kitchen garden has yielded large quantities of nutritious beans, peas, jackfruit, guava,lemons, bananas, cassava, tomatoes, aubergines,cucumber, okra, watermelon, lettuce, coriander andother produce.

“This sounds like a small thing, but it’s not.Conditions in Abyei are austere, and the workdays arevery long,” says Rashad Sinokrot, CEO of GCC Services.“The kitchen garden has created shade and greenerywhere there isn’t much of either. It’s been a stress relieverand teambuilder, and demonstrated that you can dosomething sustainable in a very harsh environment.”

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A gility recently announcedthe winners of its annualAfrica Photo Competition, aglobal contest highlighting

the rapidly changing landscape of Africa.

The third year of the competitiondrew more than 4,000 entries fromprofessional and amateurphotographers from more than 60countries. The winning imagesshowed young Malawian studentsusing tablets at school to learn their

local language; a sunset over Nairobi,Kenya; and hot air balloons flyingover Luxor, Egypt.

A cash prize of $2,000 was awardedfor each competition category. Thewinners were Judith Hermetter fromthe UnitedKingdom(Technology);Joshua Wanyamaof Kenya (Cities);and MohamedKamal of Egypt

(Industry). Hermetter also won theGrand Prize of $2,000 for herphotograph of young Malawianstudents learning to read using a tablet.

Hermetter said that thephotograph shows how technologycan bring personalized learning toevery child. “Many families in thearea were struggling due to foodshortages at the time the photo wastaken, however the children stillattended their classes because theywanted to learn.”

Wanyama, the Cities categorywinner, believes that the morephotos of Africa are shared, the morelikely it is that the world will see thecontinent in a different light. “Africais a diverse continent, full of beauty.I’ve spent a lot of time documentingthe continent, and believe there is astory that needs to be told,” he said.

“Africans and Africangovernments are embracingtechnology – and as a resulttransforming all parts of society,”said Geoffrey White, CEO of Agility

Africa. “This year’s Grand Prizephotograph illustrates thetechnological shift that is empoweringpeople with access to knowledge andinformation. As a company investingheavily in African infrastructure,Agility is seeing the advancements

the continent hasmade on a dailybasis, and we areproud to shareimages thatreflect thesechanges.”

Africa 31PHOTO COMPETITION

FAR LEFT & MAIN PHOTO: JudithHermetter and her overall winningimage. LEFT: Mohamed Kamal and hiswinning “Industry” entry.BELOW: Joshua Wanyama and hiswinning ‘Cities” entry.

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Global Integrated Logistics

International HQ Baar, Switzerland

Tel: +41 41 766 5270

[email protected]

AmericasIrvine, California, US

Tel: +1 714 617 6300

Asia PacificSingapore

Tel: +65 6463 9868

EuropeBasel, Switzerland

Tel: +41 61 316 5555

Middle East & AfricaDubai, United Arab Emirates

Tel: +971 4 813 1222

Chemical LogisticsLiverpool, UK

Tel: +44 151 494 5900

Fairs & EventsSingapore

Tel +65 6463 9868

Project LogisticsHouston, Texas, US

Tel: +1 713 452 3500

Infrastructure Companies

Defense & Government ServicesAlexandria, Virginia, US

Tel: +1 703 417 6000

[email protected]

Real EstateSulabiya, Kuwait

Tel: +965 1 809 222

[email protected]

National Aviation ServicesFarwaniya, Kuwait

Tel: +965 1 842 842

[email protected]

Inspection & Control Services, LtdSulabiya, Kuwait

Tel: +965 2498 1256

[email protected]

Metal and Recycling CompanyAmghara, Kuwait

Tel: +965 2457 7773/4

[email protected]

GCC ServicesDubai, United Arab Emirates

Tel: +971 4 455 2600

[email protected]

United Projects for AviationServices Company (UPAC)Kuwait City, Kuwait

Tel: +965 1 833338

[email protected]

Other EnquiriesCareer [email protected]

[email protected]

[email protected]

Tradelanes is the magazine of Agility,published by Agility Holdings Inc,240 Commerce, Irvine, California, 92602, US.

Editor in Chief Jim Cox Reporter/Writer Candace Gibson Consultant Editor Richard PavittDesign Paul Cooper DesignProduced by Nugene Ltd and printed in England.

Editorial CoordinatorsAmericas Jeffrey Marvin [email protected]

Asia Pacific Ya Ting Mak [email protected]

Europe Vanessa Dethorey [email protected]

Middle East & AfricaJames Gildea [email protected]

Chemicals Mark Ridge [email protected]

Fairs & Events Jennifer Lim [email protected]

Project Logistics Amy Grizzaffi [email protected]

Defense & Government ServicesSarah Benrazek [email protected]

InfrastructureRami El-Adly [email protected]

Corporate MarketingMariam Al-Foudery [email protected] Al-Shatti [email protected]

© 2018 Agility Holdings Inc. All rights reserved.

Copyright of Tradelanes and the Agility trademark areowned by Agility.Other trademarks reproduced in this magazine are theproperty of their respective owners.

For more information about Agility, visit www.agility.com Twitter: https://twitter.com/AgilityLinkedIn: http://www.linkedin.com/company/agilityYouTube: http://www.youtube.com/user/agilitycorp

Locations

Agility brings efficiency to supply chains in

some of the globe’s most challenging

environments, offering unmatched personal

service, a global footprint and customized

capabilities in developed and developing

economies alike. Agility is one of the world’s

leading providers of integrated logistics. It is a

publicly traded company with $4.1 billion in

revenue and more than 22,000 employees in

500 offices across 100 countries.

Agility’s core commercial business, Global

Integrated Logistics (GIL), provides supply chain

solutions to meet traditional and complex

customer needs. GIL offers air, ocean and road

freight forwarding, warehousing, distribution, and

specialized services in project logistics, fairs and

events, and chemicals. Agility’s Infrastructure

group of companies manages industrial real estate

and offers logistics-related services, including

e-government customs optimization and

consulting, waste management and recycling,

aviation and ground-handling services, support to

governments and ministries of defense, remote

infrastructure and life support.

About Agility

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REDUCERECYCLEREUSE