Jan Kunigk, Chief Executive of INSEE Cement Sri Lanka, shares insights into the cement manufacturing firm’s commitment to sustainability and how its sustainability-focused approach to business is helping it to overcome the economic challenges confronting the industry.
“In today’s fast-paced business world, it’s easy to get caught up in the present and forget about the future. But to truly succeed in the long run, companies must have both short- and long-term strategies. At our company, we understand the importance of strategizing for the future while addressing and planning to overcome the challenges we face today,” Kunigk avers in this interview with Echelon, excerpts of which follow:
In an essential industry that plays a significant role in global greenhouse gas emissions, INSEE Cement Sri Lanka is committed to reducing its carbon footprint and promoting sustainability.
Our goals include becoming greener, safer, more cost-effective, and positively impacting the environment and society at large. To achieve this, we’ve identified three pillars for our sustainability ambition: climate and energy, biodiversity and water, and circular economy. These pillars are bound together through the interconnecting themes of zero harm to people, and community and stakeholder engagement. Overall, this environmental, social and governance framework guides our efforts to reduce carbon emissions, lower our usage of thermal and electrical energy, and reuse and recycle materials of society for our production processes.
We’re proud of the progress we’ve made so far. We’ve reduced our dependency on nonrenewable materials and lowered our carbon footprint by using by-products and waste from other industries, aligning our product portfolio with international benchmarks to offer a more environmentally friendly product. A notable milestone was the launch of INSEE Sanstha Portland Composite Cement under SLSI 1697 in 2021, Sri Lanka’s “greenest” cement; today adopted by everyone in the local industry. And we’re constantly looking for ways to minimize waste and pollution while reducing our water consumption.
We have also made significant strides in our efforts to increase biodiversity in Sri Lanka. We have a large tree replanting programme to make our environment more beautiful and sustainable. So far, together with our biodiversity partners, we have rehabilitated over 1.5 million m2 of forest in Sri Lanka. We carry out mangrove and coral restoration and much more.
But sustainability isn’t just about the environment. It’s also about making a positive impact on society and the community. That’s why we established a waste management company 20 years ago, which has collected and re-used over one million tonnes of waste from over 1,000 customers across the island. We also believe in uplifting the wider communities through our CSR work, from medical camps to beach cleanups, to solution donations for the construction of essential facilities in areas where we work.
Our ultimate goal is to become the sustainability leader in our industry and inspire our peers to follow in our footsteps. By implementing our short and long-term strategies, we’re confident that we will positively impact the environment and society while maintaining our competitive edge.
Amid economic hardships, sustainability is not high on the list of priorities for so many industry leaders. Why do you believe businesses should prioritize sustainability? And how can it help them achieve their economic objectives?
In the business world, it’s easy to focus on short-term gains and lose sight of the bigger picture. But for long-term success, a clear strategy is crucial. As one astute entrepreneur noted, “we may have a short-term plan to tackle current issues, but the long-term strategy comes first.
The stakes are high. Concrete, one of the most widely used materials globally, has seen a threefold consumption increase since 1995. And with a growing population, this trend is set to continue. But if we don’t change our ways, we risk harming society.
We must proactively shift towards sustainability and inclusivity in our production processes and products and solutions to reduce greenhouse gas emissions and combat climate change. This is not just an environmental issue; it’s also critical to attracting the best and brightest talent from the millennial and Gen Z generations, who demand to work for purpose-driven companies.
By being purposeful, we can secure our future and inspire future generations.
What challenges do you face in maintaining your commitment to sustainability? What steps have you taken to build resilience?
It is crucial to build resilience within our people along with agility, thinking differently, and setting standards benchmarked globally, not within Sri Lanka only. We see a need to increase awareness among the broader public about the compelling reasons why we must move towards a green economy. We need to jointly and collaboratively challenge whatever we are doing and look at the technology available locally and globally today. Every member of society will have a responsibility towards that, and we must highlight individual actions that each person can take in their daily lives to ensure a more sustainable future.
Sustainability is integral to our company strategy. This also means that sustainability matters to everyone in our company – it’s part of the DNA. And whatever we do, whatever decision we take, we must have sustainability as one criterion.
How do you balance short-term survival with your long-term sustainability goals? What lessons can you share about this with other businesses?
Sustainability requires deep commitment, which we continue to demonstrate. Our product portfolio has undergone significant changes resulting in nearly 40% CO₂ reduction and improved performance, a remarkable feat achieved without significant process changes. Our success in producing a much greener product has led to our peers following suit, as manufacturers shift towards environmentally friendly solutions. In the face of a significant downturn in the construction industry, we have remained cost-efficient while upholding environmental standards, demonstrating our commitment to sustainability.
What is the relationship between sustainability and innovation? How has innovation helped you to better align with your sustainability goals?
Sustainability and innovation go hand in hand. We can’t achieve sustainability without innovating and rethinking the way we do things. At our company, we’ve developed a state-of-the-art yard that spans across Asia thanks to our commitment to research and development. INSEE’s i2i Innovation to Industry Collaboration Space is a dedicated state-of-the-art centre to engage industry stakeholders in collaboration driven by openness, speed and connectivity. Our experts work to create low CO₂ products and solutions that are available locally and worldwide. We are constantly changing processes and technologies, optimizing our projectors and investing in new ways of doing things. Innovation is the key to our sustainable strategy, and it also helps with financial support for new technologies. We’re committed to investing in sustainable solutions so that we can achieve our commitments and create a better future for all.
What is your approach to leadership during these challenging times? How are you aligning as inspiring and motivating people toward excellence?
As a leader, effective communication and empathic, honest leadership are crucial for success. We must lead by example and demonstrate dedication and commitment, as shown during the Covid pandemic. Recognizing and appreciating achievements with transparency and fairness is also essential. Our strong leadership competency framework trains our leaders in transformational strategies and the importance of being compassionate, agile, and resilient. At INSEE Cement, we pride ourselves in working as a team, doing what is right, and challenging conventions to create a positive future for future generations.