Photo by Andrea Leopardi

Can creating new products be sustainable? Franco Fogliato speaks to LUX about Salomon’s sustainability efforts and how he believes consuming differently can be more important than consuming less

LUX: When did Salomon start focusing on environmental responsibility?
Franco Fogliato: Nature is our backyard. We live in the mountains, we are mountain people. Every time we do something we are trying to be less impactful on nature. Fifteen years ago, we began looking for new technologies, new developments and ways to create positive impact in the way we do things. It has gone from creating shoes that are 100% recyclable, to being the first company in France to make its shoes in our home country, minimising the carbon footprint associated with shipping from factories overseas. These are all initiatives that started ten or fifteen years ago, which have been accelerating ever since.

LUX: How is sustainability at Salomon influenced by its athletes and employees?
FF: We are a company that is led by our athletes. Our athletes are at the forefront of our industry. They push the boundaries of what we do every day to ensure not only that we are the highest performers, but also the most sustainable.

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We also have a generation of employees that are younger, who are in their late twenties and early thirties, and have grown up with sustainability as a daily topic. Sustainability is part of what our teammates want and what they love. Every time they think about a new product, they first think about how they are going to create it without impacting the world and the planet.

Photo by Kaidi Guo

LUX: How do you approach innovation and sustainability together, ensuring that product development aligns with the brand’s commitment to minimising environmental impact?
FF: It’s a tough conversation. Do you choose the most performant product, which is not sustainable, or do you choose the product which is sustainable but less performant? There are examples every day: we had great shoes which had a great insole, but the insole was unsustainable. We changed the insole with a sustainable insole but which was less resistant, and consumers were not happy. The constant push that comes from athletes and the consumer comes back to our factories and our teams to come out with new technology, that pushes us to the next level.

LUX: Because of your company’s heritage and long-standing reputation in the outdoor industry, do you feel like you have more responsibility than others to be initiating this fight against climate change?
FF: We have to be leaders, it’s not a choice. It’s also what we like to do. It’s pushing the boundaries, in sport and building new products which are more sustainable. Sometimes people use the challenges we face just to make noise, rather than focusing on the actions that are needed. Sometimes my teammates ask me, how we’re going to build the company; people will need to consume less, they say. I say, if you think people will consume less, you are mistaken. There will be new technologies which are a lot less impactful than the way they are today.

LUX: Does creating new products contradict your aim to be environmentally friendly?
FF: I think there is a challenge still on the consumer side where there is a little bit of confusion around what is and is not sustainable. I think people see consuming less as the major driver behind minimising climate change, but in fact the driver is not consuming less but consuming differently.

Photo by Kalen Emsley

The carbon footprint impact of producing a pair of shoes is equal to driving a car for thirty miles. I have a theory that people should stop using cars and just run. I tell my people that they should stop using their cars to come to work and just run here. Why do you need a car? The human being was built on running. I think really activating a different consumption and pushing people outside is really what we want to do. We have a challenge with sustainability, but we also have a challenge in the evolution of the population globally with the digital. We have to take care of how people will evolve.

Read more: Rapha CEO Francois Convercey on diversity and sustainability in cycling

LUX: What are some of the initiatives at Salomon which have made the biggest difference towards sustainability?
FF: The biggest impact on producing a product is transportation, so there is an opportunity going forward in the evolution of the sourcing base, to source closer to the consumer. Many brands have tried that in the past and failed. Lately we had the French President, who had recognised our efforts, visiting our shoe factory in France. That factory would never have been born without us sharing our talents and skills with the local entrepreneurs. No one knows how to build shoes in France any more, as the entire production of shoes has shifted to Asia or Eastern Europe. These are the efforts which have made us recognised by the press and by the media.

LUX: What set Salomon apart from other outdoor gear brands which are also focusing on the sustainability mission?
FF: We like to think this is not a battle for who does the most. The battle is not between companies, it’s much bigger. We have to be ourselves. We have the first fully recyclable shoes; we were the first to do that in the marketplace a couple of years ago. But if someone comes in and is better than us, great! We’ve got to learn to do better, to improve. This is a battle we all fight together. I don’t have a problem with sharing technologies or doing anything which will help make the world into a better place. For once, it’s a competitive environment where there is a team. We are competing all together to make the planet into a better place.

Find out more: salomon.com

Consumers and business owners should take time to educate themsleves about the most effective ways to combat global heating. Pictured: The Alps on the Swiss/Austrian border, where the total winter snowfall is predicted to fall between 30 and 50% over the next 40 years according to the Swiss Federal Office of Meteorology

The wealthy play a disproportionate part in contributing to greenhouse gas emissions. They have an outsized responsibility to lead the way in combatting global warming. But, crowd pleasing knee jerk reactions will only lead to greenwashing and appeasing the lowest common denominator in the climate debate. Truly effective action requires resources of the most valuable kind: education and thought.

When we published an article by Professor Peter Newell last year outlining the particular responsibilities the wealthy have for reducing carbon emissions, it caused a bit of a stir. The research by Professor Newell, a UK-based academic who was the lead author of a report on the subject by the Cambridge Sustainability Commission on Scaling Behaviour Change last year, showed that the wealthy are disproportionately responsible for CO2 emissions through their consumption, habits and ability to engage in carbon-heavy activities, from flying private to attending art fairs to buying bitcoin.

Not all our readers liked that. They pointed out they participate in carbon offset schemes; that some of their activities are to benefit philanthropic and charitable institutions (theirs and others); and that they were informed about how to lower their personal carbon emissions relative to what they had been before.

To unpick these arguments is complex and points to the quandary many world leaders (political, and other) have, post-COP26, in translating good intentions to make a difference, into effective action.

Are carbon offset schemes effective, or a type of greenwash? How do you balance the benefits of social activities around the world with their carbon cost? (We all have this conundrum, to an extent, encapsulated by the old argument about whether it’s better to buy Fairtrade coffee that benefits an impoverished community in Guatemala, but requires transportation around the world, or no coffee.)

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What does being informed consist of: should you look at the Net Zero policies of companies you deal with (their stated, and often theoretical, intention to not emit carbon, on balance, sometime in the future)? Or their Scope 3 emissions – the total emissions of all their suppliers? Or at their commitment to the new buzz phrase, a “Just Transition”, that will compensate poorer countries and companies for the undeniable costs of reducing carbon emissions?

Owners of valuable classic cars can claim they are preserving second hand goods with no extra carbon cost, and creating minimal carbon footprint as they are used so little

As a relatively small media company, we can attest to the experience of the latter. Our move to 100% recycled paper, with vegetable-based inks and biodegradable coatings, from our latest issue, increased our production costs by around 40%, for no perceived increase in quality or other commercial benefits, only our own leadership role in responsible culture.

One other challenge – and here I have sympathy with the arguments of some of our readers – is consistency. Firing salvoes at easy targets, while overlooking more significant “culprits”, is baked into society, and carbon emissions are no exception.

One LUX contributor has a classic Italian sports car, which spends most of its life sitting in a dark garage, doing no harm to anything and emitting nothing. A couple of times a year they find the time and opportunity to take it out for a spin.

It is an eye-catching old car, and can’t avoid being the centre of attention, good and bad. Last spring, during one of London’s lockdowns, they took it out to a London park where they were due to meet a friend for a (legal) outdoor coffee. As they were driving slowly through the park, looking for a parking space, a young-ish father on a bicycle with two children on smaller bicycles, riding behind, overtook them and shouted “Polluter!” at the top of his voice.

From his demeanour, smart bicycle and smartly dressed children, he looked like a normal, middle-class chap who might work in marketing (or the media).

Our contributor pondered on this for days. Were they a polluter?

They had bought the car when it was already more than 10 years old, so that was a form of vintage recycling with zero carbon costs of manufacture that any advocate for carbon reduction should approve of. Five months into the year, that was the first time they had driven it and created carbon emissions, a total journey of around 10 miles/16 kilometres, which is approximately one thousandth of the annual mileage of the average driver in a developed country.

A gathering of classic Ferraris at Blenheim Palace in England. Are their owners guilty of being ‘polluters’?

When driving, the Ferrari emits around 50% more carbon than the average car, but their total mileage in the car last year was only around 200 miles/320 km, which pegs their automotive carbon emissions at less than a twentieth of the average commuter. They customarily walk or cycle to the office and meetings in London.

Of course, there was no way their interlocutor would have known all this. But other reference points are out in the open.

For example, major airlines in Europe are being compelled to fly empty planes back and forth around the continent, closed to passengers, tens of thousands of times a month, according to reports by the aviation media. This is happening for a theoretically good reason: airlines fight for valuable slots to use in major airports, and the EU stipulates they have to use or lose these slots, to prevent monopolistic behaviour and increase competition.

With low demand due to the pandemic, airlines still have to use the slots: the EU has reduced its stipulations so airlines have to land their planes 50% fewer times at given airports than they usually would, but that still means that Lufthansa, for example, is compelled to fly 18,000 near-empty flights over the course of this winter. A single flight by an Airbus A319 from Berlin to London, say, emits 10 tonnes of carbon. 18,000 flights means 180,000 tonnes of carbon emissions for no purpose.

These numbers do not include the Scope 3 emissions of each flight – the cost of transport for the crew and service teams, and so on – and they are for just one airline, out of dozens following the EU rules.

Read more: Professor Peter Newell on climate responsibility

Lufthansa alone is being compelled to create CO2 emissions equivalent to 90,000 car driving commuters over the course of a year (or three million drivers of vintage Ferraris, although there are not that many vintage Ferraris to go around), just to comply with EU rules.

EU based airlines are being forced to create enormous amounts of unnecessary CO2 emissions by flying empty planes

Lack of consistency is sometimes used as an excuse to justify immoral behaviour – “Well, he says X but he does Y, so I am going to do Y also”, which is a fallacy. But equally, if we wish to target carbon emissions, we need to be educated, informed and active.

The EU’s well-intentioned but ecologically damaging rules on aviation slots (which have been picked up by Greta Thunberg, among others) are just an example: not an excuse for us to act worse, but a reason for us to focus on the right areas, educate ourselves, see beyond the obvious targets, which in many cases may not be the correct ones. Assumptions and preconceptions won’t solve our issues; thoughtful action will.

José Soares dos Santos outside the Lisbon Oceanarium

Through his Oceano Azul Foundation and game-changing Oceanário de Lisboa, Portuguese business leader and activist José Soares dos Santos is one of the foremost forces in Europe driving ocean conservation. LUX meets him to find out how he inspires politicians and his fellow philanthropists, business leaders and scientists to create a more sustainable future. By Andrew Saunders

DEUTSCHE BANK WEALTH MANAGEMENT x LUX

We have a responsibility to look after the oceans better, because the oceans look after us. That, in a nutshell, is the reason marine biologist and lifelong ocean-conservation activist José Soares dos Santos established the Oceano Azul Foundation in Lisbon, aiming to look at sustainability “from the ocean’s point of view”, as the foundation’s motto has it.

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Whether it is the huge volumes of plastic that threaten marine life of all kinds, unsustainable fishing or the dangers of climate change-related ocean warming and acidification, dos Santos believes the marine environment is under pressure like never before. However, the crisis does not get the international attention and action that it deserves; it is time for businesses, investors, society and science to get together and spread the word.

“The fact is that the planet is a system, and if we don’t take care of the system there will be no businesses, no families and no proper life as we know it,” he says. “This is a responsibility we have and we had better do something about it.”

The central aquarium at Lisbon Oceanarium. Image by Pedro Pina

As executive director of one of Portugal’s largest and most successful business groups – whose Jerónimo Martins food distribution and retail business, chaired by his brother Pedro Soares dos Santos, had approximately €19bn in sales in 2019, with 115,000 employees and more than 4,400 stores – he used his commercial nous and network plus his marine biology training to bring together a group of experts, academics and businesses in 2014 to set up the Oceano Azul Foundation.

Read more: OceanX founders Ray & Mark Dalio on ocean awareness

“Together with my brother, we are at the head of our family group. We are the fourth generation of a very hard-working family,” dos Santos explains.“We have capital to deploy and we can call in interesting people with very good information. We have the means, and we also believe that we have the obligation to act.”

Why focus on the ocean? Portugal does of course have a long and illustrious maritime heritage, but dos Santos is motivated by his concern that the public lacks an awareness of the vital role that oceans play in sustaining life on earth. Even though the oceans cover 70 per cent of the world’s surface, the threats they are facing are poorly understood outside the scientific community. “We are talking about the oceans because there is a lot of curiosity about them. People often ask me questions about the oceans, but I am extremely surprised how little people know about them.”

King Philippe of Belgium and Queen Mathilde at the Oceanarium during their official visit to Portugal, 2018. Image by João Maria Catarino

Dos Santos points out that the oceans are not only home to 15 per cent of all known living species, but also produce over half of all the world’s oxygen, and, in the long term, has the capacity to absorb 50 times more carbon dioxide than the atmosphere. They also act as a massive heat sink to slow down the impact of global warming. They are an important source of food, resources and jobs – the OECD estimates that the blue economy could be worth $3 trillion by 2030, double its 2010 value. Human beings may live on land, but we are highly dependent on healthy, productive and sustainable oceans to enable us to do so.

Hence the foundation’s successful initiative, RISE UP – A Blue Call to Action. This is a joint initiative involving everyone from local fishing communities, foundations, indigenous people’s organisations and conservation groups, such as Ocean Unite and Environmental Defense Fund. Its campaign agenda was launched in May 2019 and presented to UN Secretary General António Guterres in February this year.

José Soares dos Santos announcing the donation of nautical equipment to the Portuguese National School Sports network by the Oceano Azul Foundation, 2019

Dos Santos was determined that the Oceano Azul Foundation would not be just another politically motivated pressure group pursuing its own narrow agenda, but instead a collaborative platform uniting marine conservationists, science, academia, business and society, as the collaborative and partnership-based RISE UP campaign, with over 400 organisations signed on in support. “We must keep science inside the foundation,” he says, “because we are not politicians and we cannot drift into politics. If we do that, we will be exactly the same as many other foundations and pressure groups. The world needs something different, not just another one of those.”

In particular, his view on the primacy of business and private investment in building a strong and self-sufficient culture of ocean stewardship marks out the Oceano Azul approach to sustainability as something out of the ordinary. “Our philosophy is not to donate money but to invest it. We believe that it is very important to take care of the planet but that we shouldn’t just give all that responsibility to the government.” He continues, “I find it very hypocritical when people say it is up to the government to change things. No! We elect the government, and we should say what we want.”

Read more: Nadezda Foundation’s Nadya Abela on running a children’s charity

Oceano Azul has also teamed up with the Calouste Gulbenkian Foundation to develop the Blue Bio Value business programme, an accelerator scheme to help new and sustainable blue-economy business ideas to grow faster and more effectively. A vibrant blue economy provides jobs and generates returns that can in turn be used to protect the ocean environment. “We believe in investing to create jobs, create value and to create social value,” he points out.

The programme, now in its third year, helps innovative marine biology-based businesses to scale up. Applicants undergo a rigorous due-diligence process that can lead to a prize corresponding to €45,000 awarded to the best start-up or start-ups, as well as access to coaching and mentoring services and valuable business networking opportunities. So far, 28 businesses from 15 countries have benefitted from the programme, ranging from Biosolvit, a specialist in offshore clean-up materials made from discarded biomass, to sustainable aquaculture engineering start-up SEAentia.

The Lisbon Oceanarium studies vulnerable and endangered ocean-dwelling species, including birds such as this Atlantic puffin. Image by Pedro Pina

At the heart of dos Santos’s mission to provide better information and education about the role of the ocean in maintaining a healthy planet lies the Oceanário de Lisboa. The newly refurbished facility is the largest indoor oceanarium in Europe and one of the city’s major attractions. Home to large collections of marine life, it had 1.4 million visitors in 2019.

“The Oceanário de Lisboa is at the heart of what we do,” he explains. “People go there and the effect on them is fantastic. They can see that below the surface of the water, the ocean is a place full of life that we have a responsibility to protect.”

Read more: British artist Petroc Sesti on his nature-inspired artworks

When he is not chairing the Oceano Azul Foundation, dos Santos is heavily involved in the family business. It’s no surprise that he is a staunch advocate of the ability of business owners to move the dial on ocean sustainability. “Business owners can change this,” he says. “I am a great believer in owners because they have a longer term perspective than financial markets.” He is at pains to point out that while he fully appreciates the importance of the financial markets, he is also aware that the long-term view required for sustainability can be at odds with short-term market expectations of publicly owned companies. “You need courage to do this; it’s not always good for your short-term share price,” he says.

José Soares dos Santos with the UN Secretary-General António Guterres at the opening of an exhibition at the Oceanarium, 2020. Image by Pedro Pina

As an example, he cites his family’s decision to remove all plastic from its businesses’ supply chains. “This is a huge transformation. It will cost a lot and take many years.” A publicly owned firm would struggle not only with the complexities of executing such a decision, but also with shareholders and hedge funds that prioritise short-term profitability. Consequently, such businesses may want to do the right thing, but be unable to follow through, he says.

By contrast, successful privately held family businesses are often built on long-term investment strategies. They appreciate the win-win of sustainable investing, but in turn often lack good quality information about what to invest in. This, too, is where the Oceano Azul Foundation has a role to play. “When we talk to owners, we can see they are worried. But they often do not know what to do. This is the bridge we have to cross – I can go out there and explain the issue, but I also have to provide the instruments.”

Read more: Marine biologist Douglas McCauley on environmental philanthropy

Creating the right framework for sustainable blue economy investment is thus crucial, he says, and the Oceano Azul Foundation’s Blue Azores programme is a model for how this can be achieved. The Azores, an autonomous region of Portugal, is an Atlantic archipelago that is home to some highly diverse and under-pressure marine environments and ecosystems. In partnership with the Regional Government of the Azores and Waitt Foundation, the Foundation has run two scientific research expeditions, the result of which was the February 2019 signing of a memorandum of understanding for both the conservation of those environments and the sustainable development of resources and fisheries within the area.

As a result of the memorandum, 15 per cent of the Azores Exclusive Economic Zone will be designated as marine fully protected areas, with comprehensive plans for the sustainable development of resources and fisheries within the zone – in line with the UN’s 2030 sustainable development goals, among others – to follow.

The Oceanarium building, designed by Peter Chermayeff in 1998. Image by Pedro Pina

Blue Azores is a great example of what can be achieved through a marriage of government, society and business investment, says dos Santos. “The Azores government has an outstanding leader who appreciates the need to take political decisions that will go beyond his term of office. It makes the Azores a very good place to invest, because there are programmes there that you can measure, and you can see making a difference. They will be good for the fishing industry, but also for the preservation of the oceans.”

It’s precisely that kind of win-win that dos Santos believes is key to building a stronger, better understood and more resilient approach to marine conservation and development. It’s a big job, but he has faith that it can be done – and more quickly than you might expect. “I am a great believer in humankind – given the right circumstances, we are capable of achieving extraordinary things and really making a difference to the planet.”

Lisbon Oceanarium

Opened in 1998 and designed by architect Peter Chermayeff, who also conceived the design for the Osaka Oceanarium, the spectacular Oceanário de Lisboa is home to some 16,000 marine organisms representing 450 species from across the globe. The attraction’s centrepiece is a vast tank containing five million litres of sea water, in which approximately 100 species – including sharks, rays and a giant sunfish – swim in near-ocean conditions.

The Oceanario is also the base for dedicated teams of experts in education and ocean conservation, including more than 30 highly qualified marine biologists. Its educational outreach programmes reach more than 100,000 school children every year.

Find out more: oceanoazulfoundation.org

This article originally appeared in the LUX x Deutsche Bank Wealth Management Blue Economy Special in the Autumn/Winter 2020/2021 Issue.