GLOBAL LEADERS IN SUSTAINABLE INNOVATION
Content by The Buzz Business
GLOBAL LEADERS IN SUSTAINABLE INNOVATION
As national leaders and the global economy ’ s most prominent businesspeople arrive in Davos for the World Economic Forum , they are reeling from one of the most turbulent years in recent political history .
Never before has a meeting of the WEF had to face a challenge of this magnitude . On the one hand resurgence in populism and protectionism is threatening to undo many of the economic gains of the last two decades , while at the same time technological advances seem set to irreversibly disrupt the very fabric of modern society .
Leadership in these complex times requires nothing less than a wholesale shift of our mental models .” Professor Klaus Schwab , Founder and Executive Chairman , WEF
If ever there was a time for coordinated global leadership it is now . The theme for this year ’ s meeting , Responsive and Responsible Leadership , has never been more critical .
“ The problem that we have is not globalization ,” said Professor Klaus Schwab , WEF founder and executive chairman , in November . “ The problem is a lack of global governance , a lack of means to address global issues .
“ A significant part of the global elite lost a sense of solidarity when it was needed more than ever before . We ’ re living in a world of transparency , and such a world cannot tolerate too much inequality .”
The events of 2016 have served as a wake-up call to senior executives meeting at Davos . Corporate leaders recognize that they cannot shy away from addressing the longterm social and economic consequences of their investments and their innovations .
“ Companies can no longer take the easy way out ,” says Francesco Starace , CEO and general manager of giant Italian electricity supplier Enel . “ They need to understand the consequences of their actions . They need to broaden their scope and develop new , more sustainable models for creating value .”
Corporate leaders have a particular responsibility to position their companies ahead of the curve , Starace believes . With an eye on the long-term future , he made the strategic decision to bring innovation and sustainability together in one single department at Enel . “ In a large organization there can be resistance to change and innovation ,” Starace says , “ but we have been very pleasantly surprised by how well innovation and sustainability thrive off each other .”
Starace , who is co-chair of the World Economic Forum ’ s Energy
Utilities and Energy Technologies Community , points out that utilities will have to reinvent every aspect of their business to prosper in the low-carbon , all-digital future .
In its generation business , Enel is gradually shutting down and phasing out all its carbon-emitting plants around the world . Already the operator of around 36 gigawatts of renewable energy capacity globally , according to a strategic plan disclosed in November the company will add new power plants and 6.7 GW in the next three years .
Enel is also investing heavily in digitizing all parts of its electricity networks ; the company plans to install a total of 18 million new smart meters by 2019 . “ Everything has to become digital ,” Starace says . “ Enel is in the middle of a huge digital transformation that is changing all companies in all sectors .”
Digitization and customer focus are the two main points of the
Francesco Starace , CEO and General Manager , Enel
company ’ s new strategic plan . As the digital revolution accelerates , Enel will be able to offer customers innovative services for electric vehicles and interconnected homes . The company has already developed technology that allows consumers to send electricity from electric cars back to a digitized grid .
A massive digital transformation is affecting all of us in our work and in our private lives .” Francesco Starace , CEO and General Manager , Enel
“ The sustainable business model we have built is now bearing fruit with increasing momentum ,” Starace concludes , urging companies in all sectors to follow Enel ’ s example by putting sustainability and innovation at the very heart of their business models .