Nr. 95 - July 2010
Insight
SEKEM‘s Journal for Economy, Culture, and Society in Egypt
Editorial Dear Readers,
the SEKEM Group has just published its third sustainability report. The new report for 2009 is again based on the recommendations of the “Global Reporting Initiative” (GRI) for its analyses of the economic, ecological, and social impact of SEKEM’s work and introduces greater transparency on the level of the individual firm. Using this framework the new documents not only reports on the commercial, environment-related, and societal aspects of the SEKEM’s activities but also highlights their intertwinements and synergies. Reflecting SEKEM’s belief that action in any of these fields must be carried out in harmony with those in any of the others the structure of the report is orientated to the image of a “flower of sustainability”. In it all aspects of sustainable development at SEKEM (a term scrutinised in this issue’s interview with Dr. Ibrahim Abouleish) come together in an integral and innovative form. SEKEM Insight will introduce you to key aspects of this year’s report in the form of a series of articles this summer. We have asked staff of SEKEM’s sustainability team to contribute these articles and introduce you into their specific fields of work.
Your Team of Editors
Sustainability
Interview
New Products
SEKEM Publishes 3rd Sustainability Report
Dr. Ibrahim Abouleish On Sustainability
ISIS Launches New Hibiscus Drink
Promoting Sustainability in Egypt: SEKEM Releases 3rd SEKEM Report SEKEM publishes its 2009 sustainability report and shows that it remains on track to promote greater sustainability in its business and in Egypt.
Spreading sustainability: SEKEM’s new firm „El Mizan“ also produces organic seedlings to help promote sustainable agriculture in all of Egypt.
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he “SEKEM Report on Sustainable Development” that is being released these days is the SEKEM Group’s third sustainability report. It provides an updated, comprehensive overview over the SEKEM initiative from its vision and ideals to its manifold firms, projects, and institutions. The new report presents all key facts and figures for all dimensions of SEKEM’s new model for sustainability: the “Sustainability Flower”. It
also assembles the results of a critical self-assessment defining clear targets for further improvements and a long-term strategy of development SEKEM’s firms envision for themselves. Over the course of the drafting process they have further developed important foundations of how to analyse, express, and evaluate SEKEM’s approach and contribution to a more sustainable development of the individual, the society, and the earth as a whole. SEKEM Insight | July 2010 | Page 1
Economy
Commencing with the vision SEKEM’s new report delineates a scenario as a guide to the future. This vision is not only referring to SEKEM as an organization but also to society and the world as a whole. The scenario shows how closely SEKEM and society are interlinked and their wellbeing dependent on each others progress. Indeed, SEKEM strives to provide society with a model for a more sustainable future in the manifold fields of its actions.
strategies that further describe how to achieve these goals. From the sustainability flower’s goals it is only a small step to the “Sustainable Development Framework” that is also based on the four key dimensions. The aim of the so-called “performance measurement system” is
To be more practical and provide clearer guidance to SEKEM staff both vision and mission are applied to the sustainability flower and explicit goals are then developed for the four key dimensions. The goals are concrete enough to allow permanent verification of every action of SEKEM and its subsidiaries to determine its alignment with the general vision. They are also broad and comprehensive enough to allow for long-term development and leave enough room for specific
The evaluation process distinguishes between three basic outcomes: green, yellow, and red. For instance, in the case of the measurement of ISIS’ energy consumption, green would refer to “excellence has been achieved”, red to “no action has been taken”, and yellow “actions have already been taken”. SEKEM is making use of this “sustainability development scorecard” for the second year. Thus a history of improvement can already be seen. One single page provides readers with an overview of the whole impact and performance of SEKEM. It clearly visualised and effectively conveys the dynamic that has taken place over the course of the last year.
Therefore, SEKEM aims to contribute its own fruitful impulses to society and has based its entire business model on the concept of sustainable development. To begin with the SEKEM mission describes what precisely SEKEM itself does to achieve its vision and includes all four critical dimensions of sustainable development relevant to initiative’s fields of activity: cultural life, societal life, economic life, and ecology. The term “ecology” refers to the systematic interdependencies between all existing organisms in nature. This explicitly includes organizations and companies. The key to success is to keep everything in balance. An ecological organization can master the dynamics between the polarities and principles that are given in any natural system, also in our society.
regard to each performance aspect that has been defined by its staff.
first and foremost to establish transparency on how sustainable development is presently defined for SEKEM. Different performance aspects of each dimensions define its scope. Secondly, its aim is to give an overview of how good or bad SEKEM is actually performing with regard to sustainable development in general. To achieve this indicators are measured and “benchmarked” against (compared with) a pre-defined evaluation framework that describes the ideal case for each performance aspect. It is like permanently comparing the actual “is-state” with an ideal state that “should be”. The result is that SEKEM as a group and subsequently also all SEKEM companies are evaluated with
The reader intending to dive deeper into these performance aspects and examine the indicators behind each aspect may have a closer look at the “Status and Performance Overview” available for each of the key dimensions. This is also helpful for managers as it allows them to actively monitor the organization’s performance and to react on it through concrete efforts. Each indicator has its own targets and constant monitoring is taking place of the relationship of the indicators to their specific targets. This allows quick insight into existing challenges and focus areas. The upcoming four issues of SEKEM Insight will provide detailed overviews of the four key dimensions allowing readers to understand better how SEKEM’s individual companies are managing the challenge of running sustainable businesses. Magdalena Kloibhofer & Maximilian Boes
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The report can be requested at: sustainabledevelopment@sekem.com
SEKEM Insight | July 2010 | Page 2
Economy
„Sustainable Development is the Only Way for Mankind and Nature to Survive.” Günther Karner, CEO of Trigon (Austria), a consultancy for sustainable organisational development, spoke with Dr. Ibrahim Abouleish on the personal dimension of sustainability. I would say the most pressing issues include population growth and extreme poverty, sustainable agriculture and food security, climate change, scarcity of natural resources (water, energy etc.), socio-ecological economic activity (e.g. mutual understanding), and the dialogue between the East and the West. History of mankind knows distinct epochs. What epoch are we currently approaching?
Dr. Ibrahim Abouleish regularly speaks on issues concerning sustainable development
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he founders of SEKEM have from its inception emphasized the concept of sustainable development and a comprehensive and inclusive idea. Globalization demands standardisation in many fields and that of sustainable business practice is no exception. For many years SEKEM has been going to great lengths in the framework of the IAP-Initiative (initiative for partnership in the business sector) to comply with these requirements. It is its goal to not only publish an annual sustainability report as an expanded review of its impact on the environment. The report shall also serve as a conceptual groundwork to allow reflection and recurring re-examination of its own comprehensive development goals within all SEKEM firms. Günther Karner, CEO of Trigon, spoke with Dr. Ibrahim Abouleish on the personal dimension of sustainability:
From your perspective, what are the most important global issues and challenges for the upcoming decades?
Today we seem to be living in an era shaped by individuality and selfassertion. This promotes strong tendencies of egoism. I have the hope that the current epoch will not come to a catastrophic end due to such tendencies. Hopefully, the following epoch will instead be based on a refined ecological and ethical consciousness. In what kind of world are our children and grandchildren going to live in? If my vision in fact becomes reality the main difference compared to the current epoch would be the way the individual perceives things and the values he or she holds. Every human being would see him- or herself as a part of the world as such and every human being would be deeply connected to the health of nature and take greater care of natural resources. Given your personal engagement, how do you understand the concept of sustainability? Sustainability was not exactly my original motivation for my personal engagement. Still today I do not strive for a specific status quo. I prefer to understand sustainabil-
ity as a continuous process and I would like to contribute to the mutual development of the individual being and the society as a whole. Development can only be sustainable if it is in accordance with the princples of nature. In fact, that is why I prefer the term “sustainable development”. What is so fascinating about sustainability for you? I am deeply concerned by sustainable development. I feel it points to the only state of coexistence for mankind and nature, the only form to allow for future development. The challenge is how to inspire new values. We need to stop focussing on self-assertion alone and instead strive to strike a balance between both: individual development and integration. Beyond that sustainable development also implies an ethical approach whereby every human being perceives himself or herself as a part of mankind and earth as such. This way we may achieve greater awareness of our individual responsibilities towards every living being. What does sustainability mean for SEKEM as an initiative? At SEKEM we live the idea of sustainable development on many different levels. Sustainable development is at the core of the SEKEM vision, it is deeply embedded in our corporate philosophy and is lived as a culture in all our companies as well as all social and cultural institutions. Questions asked by Günther Karner CLICK HERE for current news on SEKEM on Twitter.
You can visit SEKEM yourself: www.SEKEM-reisen.de SEKEM Insight | July 2010 | Page 3
Economy
ISIS Introduces New Hibiscus Drink to the Egyptian Market
Summer Orchestra Returns to SEKEM
In June SEKEM’s firm ISIS introduced a new Hibiscus drink as a healthy alternative to sweetened refreshments in Egypt.
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ue to their sugar content many conventional refreshing drinks do not actually quench your thirst in summer but instead encourage it. ISIS’ new drink is different: the new organic ice tea made from natural hibiscus tea that has just been introduced into Egyptian markets is being offered in four varieties catering to the taste of Egyptian consumers: with mint, cinnamon, doum nut, and lime.
Especially during the hot Egyptian summer months cooled drinks are a beloved refreshment in cities like Cairo and the countryside. ISIS’ new “Hib” now provides a healthy and even certified organic alternative to classical drinks popular in the country. ISIS has come up with an extensive portfolio of marketing initiatives to boost sales of its new product. The marketing team has developed posters and danglers to be used directly inside shops, billboard advertisements that will be installed alongside major roads in Cairo, and educational brochures that highlight the health benefits of the hibiscus plant. The team also developed innovative marketing strategies appealing to specific types of retailers. For instance, shop owners can now order fridges prominently decorated with the ISIS logo for targeted presentation of “Hib” and other of ISIS’ cold drinks and juices at their own store fronts. This opportunity is particularly attractive to small-scale business owners that do not yet have refrigerating appliances in
Popular orchestra project again invites European participation.
their shops and can thus now begin to offer their customers an entirely new assortment of products during the summer months. It is worth noting that in Egypt a large share of the turnover made with groceries is still being generated by small and independent stores most of which are owned and run by the founding family. It is thus a part of ISIS‘ sales strategy to specifically cater to the needs of this group of clients.
„Hib“ was introduced to a great start in early summer and the marketing and sales team hopes to have a new bestseller in their portfolio of products that will allow them introduce the ISIS brand to many more Egyptian customers.
Christina Boecker
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hursday afternoon, shortly before four o’clock: music stands are shuffled around, sheets of music are being sorted, and chairs are being arranged. The last and final hurried preparations are made before the first concert of the popular summer orchestra is held on the rooftop of SEKEM’s Naturetex for the co-workers of the initiative that meet in the grand circle at the end of each week. Approximately 30 musicians of an age of 9 to 51 from Egypt, Germany, and Austria had rehearsed together for one week and studied a programme of nine pieces. Bernhard Sieberer had acted as the artistic director of the group selecting music by Mozart, Mascagni, and even Irish and Scottish folk songs for public performance. Two recital pieces for soprano and countertenor had also been included. Additional performances will follow: at SEKEM’s administration in Cairo, as „Orchestra Caravan“ in various firms on the SEKEM farm, and in the main hall of the SEKEM School. This last performance will mostly be visited by those difficult to reach at their workplaces by the “travelling orchestra”. The merry music provides co-workers with a pleasant diversion during their busy workdays. While our first concert is still being prepared we witness a moving scene: a girl with a violin dreamily closes her eyes, straightens her back and attempts to perform her piece in the way she apparently imagines she would if she would be able to play as good as her older role models, three students of music from Austria. Reward for major efforts can show itself in the smallest ways. Christina Boecker
SEKEM Insight | July 2010 | Page 4
Impressions
Impressions from SEKEM
Even though export contributed heavily to SEKEM’s commercial success in many different fields during its first years of development the share of turnover generated by products for consumption in Egypt has continuously risen. Today for all SEKEM firms this share amounts to more than double that of international sales. Our picture shows a small part of the delivery car pool of ISIS, SEKEM’s biggest firm. The mostly refrigerated green cars that are easily visible across large distances have become typical for SEKEM’s brand as they deliver fresh foodstuffs and groceries to Cairo’s supermarkets and retailers. With their help ISIS has generated approximately 30 million Egyptian pounds of turnover in 2009. 592 co-workers or more than a third of the SEKEM Group’s overall staff cohort are producing more than 270 products, for instance more than 240 million bags of tea every year, a product hugely popular in the country. Soon a table water bottled by ISIS will be added to the product portfolio. For the coming quarters ISIS has identified the target of continuing its efforts of popularising the consumption of organic food in Egypt. Still products bearing „organic“ as a quality mark are not well-established on the Egyptian market. ISIS thus holds a pioneering role in the creation of awareness of the importance of ethical consumption with consumers.
SEKEM Insight | July 2010 | Page 5
News in Brief
„Organic & More“ Opens Flagship Store in Cairo
On the 10th of June 2010 SEKEM’s organic supermarket chain “Organic & More” celebrated the successful opening event of its first flagship store in Maadi, an vivid district of Cairo. On 100 m2 the new shop offers more than 500 organic products most of which originate in SEKEM’s own firms (such as food and textiles) while others arrive from local certified organic suppliers. Uniquely the new store also features a large number of imported goods by leading European companies such as Voelkel, Rapunzel, and Naturata completing the extensive product portfolio. The lively opening ceremony sparked the enthusiasm of the numerous invited guests and attracted a great deal of attention in the area around the premises of the new venue. The store immediately proved extremely popular with consumers and passers-by alike. The guests specifically praised the well-balanced design which stands out from that of many other shops in Cairo, and the wide selection of sustainable products. All of the products on sale at the store are fully compliant with the sustainable business philosophy of SEKEM and its firms. Thomas Fischer, project manager of “Organic & More supermarket”, believes the opening to be „a huge step forward for movements aiming at fostering ethical consumption and sustainable development in Egypt“.
Harvesting the sun and wind is key for African development
30 Years „Alternative Nobel Prize“ in Bonn
“The solar radiation Africa receives could make this continent the SaudiArabia of the future”. With this bold statement, Hafsat Abiola, daughter of Nigeria’s late President Elect Moshood Abiola, summarized the results of “Power Kick for Africa”, a two-day strategy workshop on renewable energy policies. The gathering was organised by the World Future Council Foundation, an international non-profit organisation partnering with SEKEM to raise awareness about sustainable development in the region.
From 14 until 19 September 2010 Bonn will see the Anniversary Conference of the Swedish „Right Livelihood Award Foundation“ - better known under the name „Alternative Nobel Prize“. For the first time in Germany approximately 80 laureates of the prize including Dr. Ibrahim Abouleish will gather in Bonn. The anniversary’s conference motto is: „Changing Course? – Reclaiming Our Future“.
The event brought together representatives from utilities, regulators, industry and civil society from ten African countries who are determined to expand their cooperation under the umbrella of the African Renewable Energy Alliance (AREA). Their main point of discussion was how policymakers can support the harvesting of abundant renewable energy and thus open the door for sustainable African development. “If we repeat the mistakes of the developed world by realising African development mainly on the burning of fossil fuels, climate change will have a disastrous effect on our countries”, said the Executive Director of the Regional Centre for Renewable Energy & Energy Efficiency of ECOWAS, Mahama Kappiah, at a press briefing. On the other hand, decentralised energy production through solar systems and wind farms could bring power to many remote regions, thus allowing development, creating jobs and benefitting health.
More “Organic & More” shops will open their doors soon.
Among the recommended policies were micro-credits for the purchase of solar home systems, the reduction or abolition of import duties on renewable energy technology, and policies for subsidising the use of solar water heaters as widely used in Middle Eastern and Mediterranean countries.
Pascal Blum
Source: WFC
The laureates belong to the pioneers of the global civil society. In their home countries they have developed working models of how to tackle mankind’s most pressing challenges e.g. created new economic paradigms, fought for democratisation and human rights, or worked for progressive, future-oriented politics. The conference provides the opportunity to promote the aims and principles of the prize and the impact of specific projects of its laureates. Individual events at the conference are open to the public. The complete conference programme can be accessed on the event’s website. Source: RLAF
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More information: http://www.kurswechseln.de
Masthead: The editors of SEKEM Insight wish to thank all contributors to this issue. Editors: Christina Boecker Bijan Kafi Contact: SEKEM-Insight c/o SEKEM Holding P.O.Box 2834, El Horreya, Heliopolis, Cairo, Egypt insight@SEKEM.com Pictures: 1,2, 5: SEKEM; 4l+r, 6: Sandra Poettrich No republication without written consent by the publisher.
SEKEM Insight | July 2010 | Page 6