< Previous30 C EO M I D D L E E A S T APRIL 2020 SUSTAINABLE TRANSFORMATION, ONE STEP AT A TIME ALEX GHEORDANESCU WORKS FOR CONCERTO TIC, AN ORGANISATION THAT HELPS BUSINESSES REALISE THEIR SUSTAINABILITY GOALS BUSINESS | SUSTAINABILITYAPRIL 2020 CEO MIDDLE E A ST 31 OUNDED IN JUNE 2019, CONCERTO TIC works with organisations to identify their current and potential economic, environmental and social impact across their value chain and supports them to embrace sustainability under the umbrella of the Sustainable Development Goals. Concerto TIC uses a comprehensive methodology of tailored frameworks, strategies and tools which enable a step-by-step transformation towards long-term organisational growth. Impact sits at the core of Concerto TIC, as it aims to accelerate progress towards global and local development agendas by enabling sustainable practices and rewiring business models. It is all about supporting business leaders and encouraging them to adopt the mind-set of impact and defining performance indicators which don’t only focus on the financial returns, but also on the advancement of societies and environmental preservation. Concerto TIC also supports impact-oriented organisations, such as social enterprises, in developing impact tracking and reporting tools which enable their growth and drives further value for their stakeholders. Alex Gheordanescu has always been curious about how businesses can work in an ethical way and be sustainable. Holding key positions across diversified industries, he understands how success is defined and driven across all levels. Working in the UAE market for over a decade, his work includes stints at IHG’s MENA loyalty programmes, leading Emaar’s Group Loyalty marketing strategies and launching the Emirates NBD ‘U By Emaar’ Visa credit card. A strategic thinker with entrepreneurship at the core of his heart, he works alongside his wife Mihaela Nina in inspiring and empowering regional businesses via sustainable and ethical practices. What is Concerto TIC’s mission and who does the company serve? Through Concerto TIC (The Impact Company) part of Augmentation X, our aim is to enable our partners future proof their business models by integrating impact performance indicators within their strategies. We work with public and private organisations, ranging from start-ups, where our focus is social enterprises, SMEs and corporates and equip them with the knowledge and tools to maximise their performance by looking at their strategies through the lens of impact, in alignment with the Sustainable Development Goals. At the core of Concerto TIC sits a thoroughly developed methodology which supports us bridge the knowledge gap between the current business as usual and sustainable, future-ready models. What made you decide to go into the field of sustainability? Despite the existence of a strong business case for sustainability, which clearly demonstrates the link to an organisation’s financial performance, many business leaders often don’t have the in-house resources or knowledge to implement it. Moreover, sustainability is frequently interpreted differently with multiple terms and frameworks which often are not based on different business models. We knew that we had a unique opportunity to change the current ecosystem and so Mihaela Nina and I brought to the table our combined experience in business mechanics, commercial viability, revenue growth and sustainable impact. Why is it important for businesses to consider sustainability when it comes to their business practices? This is such an important aspect to address. Historically, sustainability has been associated with CSR initiatives, such as volunteering or donations, environmentalism such as plastic reduction or paperless offices, just to name a few. Although these are indeed some of the areas addressed by sustainability, there is more to it. A sustainable business is one which addresses all impact areas and aims to drive value for all it interacts with, which on the economic impact side means jobs creation, revenue generation, wages, GDP contribution for instance. It encompasses a solid governance structure that looks at the integrity and ethics of an organisation and an analysis of risks and opportunities across the social and environmental impact areas, which can be health, wellbeing, basic needs, accessibility, inclusion, human rights, water scarcity, climate change, pollution, food waste. As per the why behind a sustainable business model, just take F32 C EO M I D D L E E A S T APRIL 2020 BUSINESS | SUSTAINABILITY as an example the garments industry. If an organisation has its final product manufactured in high-risk areas for unethical employee practices this will eventually come back and directly impact the business reputation and respectively brand equity. So besides just being the right thing to do, there is a clear link between business continuity and sustainability. What are some of the major trends you’re noticing in regards to sustainability? Business sustainability is increasingly becoming part of the agenda of companies from all over the world. We have 10 years for SDGs to be achieved and large corporations have demonstrated growth and performance as soon as they started to implement sustainability. If we look at recent statistics, more than 71 percent of interviewed organisations are planning to take action. Moreover, let’s not forget that the main catalyser for this comes from consumers’. More than 78 percent seek out sustainable products or services. The next generation prioritises impact and with them becoming the purchasing power, organisations will need to adapt. What factors go into developing a corporate strategy for sustainability? If I were to summarise a sustainability strategy, it would include leadership, foundation and integration. Sustainability starts at the top and is cascaded within the culture of an organisation, where everyone becomes part of this journey. Part of our role is to develop this within the organisations we work with. The foundation is then established on the basis of the businesses ambition and a principled analysis of the business model and value chain. This is a crucial step in ensuring the right framework and methodology is used to create a sustainability strategy. And lastly and the most complex stage is the integration through a tailored system which fits the respective organisation. How can a business incorporate a sustainable strategy that will ensure a major impact? For a comprehensive sustainability strategy that will evolve with the organisation and support its performance, an organisation needs to take a holistic approach across the entire value chain. The first step is to ensure the right mechanism is in place to identify the impact, take the right actions and track progress. Otherwise, it will be like saying that we want to achieve X in profits, but we have no commercial strategy, nor are we monitoring our expenses. What are the common misconceptions that most businesses have about sustainability? The challenge with CSR programmes is that they normally are a satellite to a business model and are mostly means of giving back, rather than sustainability which is supposed to be an integrated strategy. Another aspect is that sustainability is often perceived as a marketing tool and although sustainability does connect you to your audience, we have seen plenty of claims which are unrealistic and only aim to position the organisation in a good light. However, this has started to change, with conscious investors, entrepreneurs, professionals and consumers APRIL 2020 CEO MIDDLE E A ST 33 starting to change the narrative and define the correct meaning of sustainability. What does the future look like for sustainability among businesses, especially small businesses? Sustainable business models are actually the future. The pace of change which we experience in terms of how the ecosystem looks at value creation and how businesses conduct themselves is exponential. If we look at organisations such as Unilever, Pepsi, Microsoft and businesses in investment and asset management, they all are geared towards sustainable models. With this and with consumers becoming more conscious, small businesses need to transition towards balancing and driving a positive impact on all areas, economic, social and environmental. Otherwise, they will be left behind. In what ways do you believe sustainability will grow and develop in the region? In the region, we have a great model in which sustainable development is driven from the top. The 2030 vision of both the UAE and Saudi Arabia both have sustainability as main pillars, with leadership driving them. If we add consumer demand for sustainable products and services, and employees seeking purposeful organisations, we have a movement which urges businesses to take action. This is partly due to the efforts the UAE has made in creating awareness on sustainability. With SDGs coming into place in 2015, we have seen more and more sustainability initiative adoption by companies. What’s the best advice you could give business owners regarding business sustainability? Whether it is about stabilising current business performance or growing, look into sustainability and how it can enable your long-term vision. The right timing for this is now and the great part is that when you compare the initial cost to the outcomes of an integrated sustainability strategy, the ROI proves the business case. Concerto TIC aims to offer support to organisations in establishing the right sustainability strategy. 34 C EO M I D D L E E A S T APRIL 2020 LEADERSHIP RETAIL INDUSTRY DEALING WITH FLUCTUATIONS IN CONSUMER FOOTFALL, LABOUR REQUIREMENTS, AND RESCHEDULED BRAND CAMPAIGNS MUST BE DONE TOGETHER, WRITES MOHAMMAD A. BAKER, CEO OF GULF MARKETING GROUP CROSS THE GULF REGION AND AROUND THE WORLD, THE RETAIL SECTOR — LIKE many others – is facing an unprecedented situation as we confront the spread of the Covid-19 pandemic. Public health must remain at the top of our priorities. This includes a commitment to protecting the health and safety of employees, partners, and customers. To this end, all of us should be closely following the latest guidelines issued by regional and international health authorities, working with partners across the retail value chain. As a member of the Gulf ’s retail sector, we also have a commitment to supporting its long-term vitality. Again, we are in a very dynamic situation. Each day there are changes that we must adapt to, and new issues we must try to resolve. What is certain, however, is the critical A need for cross-industry collaboration. This collaboration is needed to protect public health – first and foremost - and also to support local retailers as they implement their continuity plans. For decades, the retail sector has been a bedrock of this region’s economy. I have no doubt that it will continue to be as long as we navigate this new reality together. Government authorities have been very supportive to date in encouraging collaboration. In the UAE, for instance, senior officials from Dubai Tourism have worked in coordination with the Department of Economic Development in Dubai, and Dubai Chamber of Commerce to host discussions with leading retailers to review market issues and consider future actions. This is now happening regularly in Dubai. CORONAVIRUS: COLLABORATION BETWEEN LANDLORDS, RETAILERS KEY TO PRESERVING THE GULF REGION’S RETAIL SECTOR APRIL 2020 CEO MIDDLE E A ST 35 Underpinning that collaboration within the private sector must be a spirit of understanding and flexibility. Landlords and retailers alike are facing exceptional challenges. Dealing with fluctuations in consumer footfall, labour requirements, and rescheduled brand campaigns must be done together, with a shared sense of responsibility and agility. Many retailers, for example, have signed annual or long-term rental agreements with landlords based on expected footfall. Of course, these landlords are no longer able to guarantee the same level of footfall that they may have anticipated even a month ago. That reality alone should be bringing retailers and landlords together to review tenancy contracts and decide what is a fair and acceptable way forward. The recent announcement from Al Futtaim Group to set up an AED100m fund for retailers to cover rent relief is a great example of how this collaboration is now happening. Similar actions will hopefully be considered by other leaders throughout the retail value chain. Ultimately, I remain optimistic that we will preserve the region’s retail sector over the long-term. No one knows how long this health pandemic will last, but through close collaboration, we can better safeguard public health as well as the future of the industry. “THROUGH CLOSE COLLABORATION, WE CAN BETTER SAFEGUARD PUBLIC HEALTH AS WELL AS THE FUTURE OF THE INDUSTRY” Retail expert Mohammad A. Baker is deputy chairman and CEO of Gulf Marketing GroupCOVER STORY | SHAILESH DASH 36 C EO M I D D L E E A S T APRIL 2020 HE POWER OF POSITIVE THINKING. IT’S A WELL-WORN PHRASE ADVISING US TO STAY THE COURSE AND LOOK at the bigger picture. It’s perfectly sound advice of course, for all manner of sticky situations, but even the most optimistic amongst us may find it a little bit of a stretch during a time when entire nations, businesses, and individuals are being challenged as never before. The world has temporarily shut up shop in a bid to stem the spread of Covid-19 and at time of writing, self-isolation at home is the new normal. It is a strange and unpredictable period in the history of the world and there’s a vague feeling that nobody really knows how it will all play out. Figuring that out requires a mix of pragmatism, realism and, if you’ll allow us the pun, a dash of optimism. It also requires leaders to act more decisively and quickly than every before, because the only constant is change, says serial entrepreneur and financier Shailesh Dash. Challenges will come and go, but our legacy of how we dealt with them will remain. “We have to deal with things in a very human way, whether with our stakeholders, clients or our own families. I don’t think there is a way to be prepared for this specific situation. As a business owner, you prepare for different economic situations. You’re generally not prepared for biological conditions such as a pandemic. But now all of us have this experience and we have to make quick decisions that will have an impact on how we deal with our lives and how we deal with our businesses.” Exuding calm, Dash smiles frequently and speaks in the relaxed, unhurried way of a man who is used to being listened to and heard. A member of several boards, he was instrumental in Al Najah Education’s recent and much-publicised decision to be the first T A DASH OF HOPE ONE OF THE MOST INFLUENTIAL AND RESPECTED FINANCIERS IN THE REGION, WHEN SHAILESH DASH URGES CEOS, LEADERS AND INDIVIDUALS TO STAY FOCUSED AND HOPEFUL FOR THE FUTURE DURING A TIME OF CRISIS, YOU KNOW IT’S ADVICE WORTH TAKING. BY JOLA CHUDY COVER STORY | SHAILESH DASH 36 C EO M I D D L E E A S T APRIL 2020APRIL 2020 C EO M I D D L E E A S T 37COVER STORY | SHAILESH DASH 38 C EO M I D D L E E A S T APRIL 2020 school group in the UAE to offer reduced school fees for term three. “We have observed unusual and turbulent times. It would be wrong, as a business, not to do what we can to help our customers and to recognise their loyalty,” says Dash. “Things are changing rapidly, and the onus is on every individual and every business to act in a positive way. With a 20 percent reduction in fees for parents, we can ensure the online infrastructure of the school is still maintained, including our teachers’ jobs.” Ahead of the curve Dash, who presides over a diversified group that includes healthcare, education and logistics, exudes curiosity for global events and how they affect those around him. When he sat down with CEO Middle East, just a few days before social distancing and working from home was fully implemented, Covid-19 was the main topic of conversation, and he was keen to get ahead of the curve in terms of the most appropriate responses and actions. A seasoned investor, knee-jerk reactions are not his style and he explains that the decision to reduce school fees has been in discussion for a few weeks, with both the board and the school consulted as to the most sustainable way to ensure that when the crisis is over, the business and its customers are in a position to recover and endure. “At this time there is a lot of uncertainty, but when negative news seems to be the only news, a ‘this too shall pass’ approach is a much- needed attitude. It is easy to focus on our own challenges and forget the bigger picture. No one is exempt from this, and we have to work together to find solutions and survive.” Dash should know; he himself launched a successful business in 2009 following the financial crisis, at a time when the mood was one of caution and pessimism. “Today, we have to get through, but leaders need to believe there will always be opportunities. Governments need to take precautions, rather than stop the economy. But it is hard to stop a virus until a vaccine is developed. We look forward to the medical industry finding a solution but at the same time we have to be careful that the economy doesn’t close down and that people – especially those living from paycheck to paycheck – have enough to survive.” A veteran of the investment industry, Dash has more than two decades of experience and insight in navigating the ups and downs of global markets. His experience is formidable; the Indian national and UAE resident has executed more than 14 IPOs, served on dozens of boards, and created the second largest private equity business in the MENA region. Having founded several successful financial services companies including Al Masah, Regulus Capital and Future Capital, he has presided over more than $1 billion of investments, offering clients private equity advice in healthcare, education, and logistics, alongside services advising on real estate and wealth management. A trusted thought leader, he urges businesses to comply with government and medical directives while assessing their own internal challenges. “We observe the media and what other businesses are doing. We are trying to keep our employees safe as possible through APRIL 2020 C EO M I D D L E E A S T 39 “I am not a pessimistic person and have started businesses during the most challenging times. I believe that doom and gloom times can lead to opportunity. For example schools may be closed, but there is a huge opportunity for e-learning. Opportunities will always be there.” In search of satisfaction What drives an extremely successful corporate financier to go it alone and set up his own business during a time when the world is still shaking off a financial crisis? The answers, says Dash, was a search for meaning and satisfaction. sanitizing and working from home. That’s important, but what is also very important is you still service clients and your staff. There has to be work, they have to be paid. This is important. We may all suffer, but we have to go through it together.” Dash acknowledges that the situation is completely new, and reflects on his own experience of leaving the corporate world and embarking on an entrepreneurial path in 2009, a year also notable, as 2020 is now, for not exactly being the most economically encouraging of times. AWARDS AND ACHIEVEMENTS Shailesh Dash has been recognised throughout his career for his contribution to the world of finance • Recognised among the top 100 influ- ential people in Dubai – 2016 / 2017 by Arabian Business Magazine • • Best Strategic Vision Award- Banker Middle East Industry Awards 2017 • • Recognised among the top 100 Indian Leaders in the Arab World – 2016 / 2017 by Forbes Magazine • • Best CEO for Ethical Investments – 2016 from World Finance • • Global Visionary CEO of the Year – 2014 from The Leaders Magazine International Malaysia and The Fed- eration of GCC ChambersNext >