A Sustainable Future: Digitalization and Innovation Pave the Way for Growth

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Co-authored by:  

Peter Herweck, EVP, Schneider Electric Industrial Automation, is in charge of Schneider Electric’s global Industrial Automation Business since 2016. He has extensive experience in Automation, Digitization and Industrial Software. Peter started his career at Mitsubishi in Japan and after joining Siemens held several executive positions in Factory and Process Automation and headed Corporate Strategy. 
Craig Hayman, CEO, AVEVA,  joined AVEVA in February 2018 as Chief Executive Officer. Previously he was Chief Operating Officer at PTC, where he had responsibility for engineering, marketing, and sales of the ThingWorx® platform, as well as computer aided design, and product lifecycle management solutions. Craig also served as President of the Solutions Group at PTC, where he led a resurgence in core solutions businesses, while driving sales of the company’s IoT technology platform.  

By Peter Herweck and Craig Hayman

This time last year, global executives were mid-air on the way to Switzerland for the annual World Economic Forum meeting in Davos. Amid the alpine peaks, technologists, politicians and business leaders came together to review priorities and agree actions. Not this year. Like so many other aspects of the past twelve months, Davos is disrupted. Next week the Davos Dialogues – open to all for the first time – will meet online.

It’s tempting to think much has been lost – but we prefer to think of what is gained. Hundreds of tons of greenhouse gas emissions will not now be generated in getting the Davos entourage to the mountains. The digital-first conference will be more open, enabling thousands more people to witness and participate in discussions.

Our New Digital Norm

With 2020 clocking up some of the highest temperatures on record, and climate change accelerating, digital Davos could be a new norm. With the US set to recommit to the Paris agreement, and the global population having adjusted to markedly less travel in 2020, there is a unique opportunity to put sustainable practices at the heart of our future vision.

Certainly, at AVEVA and Schneider Electric, that’s what we have done. Learn more at AVEVA World Digital from 26-28 January where both Jean Pascal Tricoire and AVEVA leaders will be speaking about our sustainable priorities and digital opportunities in the coming year.

A good example is Veolia Water Technologies, the world’s largest supplier of water services.  Veolia is  now using cloud-based data and analytics to standardize design of plants. Teams across the globe use shared, secure information and leverage simulation tools, to determine how to best optimize the operations.  By pinpointing areas where risks for water losses are high, and quickly testing resilient designs, Veolia has cut water losses at over 100 of its worldwide facilities and saved 15% in energy each year with 20% higher production efficiency.

Enhanced Sustainability Through Digitization

Encouraging progress is being made throughout industry to more closely link digitization of operations to sustainable outcomes. For example Henkel, a global manufacturer that combines chemicals to produce everyday products like Persil laundry detergent and washing liquids, has reduced its environmental footprint by one third over the last two years. By installing over 3,500 sensors across each of their manufacturing sites and connecting to the cloud, they now have capacity to view and monitor 1.5 billion data points.  Because of this, facility operations teams are more agile than ever, using the consolidated data to meet fluctuating demand and optimizing production while reducing their energy usage by 16% year-on-year and saving an average €8 million per annum. By drastically reducing consumption of energy and water, and producing less waste, Henkel can simultaneously focus on both business continuity and the long-term health of the planet.

Innovation Within Older Manufacturing Sites

Digitization-driven improvements in sustainability are often highlighted in greenfield factory scenarios where designs can be engineered from the ground up leveraging prevailing technologies to optimize efficiency and energy savings. Yet, in many instances, brownfield facilities can offer opportunities to radically reduce energy costs while shrinking their carbon footprint.

Schneider Electric’s 62-year-old Lexington, Kentucky factory has recently digitized end-to-end operations within the existing factory, now one of the group’s leading smart factory showcases. Using the open EcoStruxure architecture, the team achieved a 26% reduction in energy usage and costs, translating to more than $6 Million in savings over the last three years. At the same time, customer satisfaction has improved by 20%, demand forecast data is 20% more accurate, and energy costs have been reduced by 26%. The Lexington site’s digital energy management strategy leverages IIoT connectivity, edge analytics and predicative analytics to drive energy efficiency and further sustainability goals – all enabled by Schneider Electric’s and AVEVA’s integrated software solutions. As a result, the site has been recognized as a World Economic Forum lighthouse facility, one of the world’s most advanced factories leading the way in the adoption of Fourth Industrial Revolution technologies.

Sustainable Innovation For a better future

Leading organizations are increasingly redefining their business goals in a more sustainable context. The past twelve months has shown us the importance of digitization for business continuity,  and how modernization is providing a pathway for redefining a more optimal and energy efficient future. For industries, the need to drive investment and improve digitization has never been more urgent. Without sustained investment in innovation, our society will not effectively meet the sustainability goals needed for our better future, for our companies and for the planet. This is our challenge – and our opportunity. We can’t wait to help our customers shape this sustainable future.



To hear AVEVA’s Craig Hayman and Schneider Electric’s Jean Pascal Tricoire speak more about Sustainable Innovation for the Future, register for AVEVA World Digital taking place on January 26-28 at www.avevaworld.com.

To discover how Schneider Electric and AVEVA’s digital solutions can help your organization adapt and optimize operations, while lowering your carbon footprint, visit www.aveva.com/sustainability.

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