“The fight against climate change is above all a shared fight”

Against a backdrop of climate emergency, the decarbonisation of economic activity and the implementation of new business models are among the main challenges facing business leaders. But things are not moving quickly enough. How can we accelerate progress in CSR and sustainable development? We meet Pascaline Hayoun, Director of Strategy & Sustainability for Saint-Gobain Surface Solutions until August 2023, and now CEO of Saint‑Gobain Hong Kong & Macao. She won the “Sustainable Development Woman of the Year” category at the Women in Manufacturing Awards 2023.

When it comes to reducing greenhouse gas emissions and limiting global warming, most major economic players (countries and large companies) will fail to achieve Paris Agreement targets. What has gone wrong over the past ten years?

Pascaline Hayoun: Firstly, we should highlight that there are major differences between continents and from one country to the next. The regions that have made the most progress are those that have managed to introduce strong regulations and incentives. But many countries have been slow to address these sustainable development objectives. European countries have made the most progress. The United States took longer to commit to the process. China and India, both major GHG emitters, have also recently launched initiatives for achieving carbon neutrality and developing renewable energies.

Businesses also share in this responsibility. While the largest companies may have defined targets and action plans, they also need to mobilise their entire ecosystems. Mid-cap and medium-sized companies (their suppliers and partners), lacking the requisite financial and human resources, need support and assistance to join the movement. The emergence of careers in sustainable development is very recent. University courses are still few and far between.

Do you think it is still possible to significantly reduce GHG emissions, and more broadly, to accelerate progress in sustainable development and CSR?

P.H.: We are on the right track. We are seeing a clear acceleration in ambition and action, which is being reflected in the outcomes. But a number of future innovations will still be needed to achieve Net Zero Carbon by 2050. The Saint‑Gobain Group is committed to net zero carbon emissions by 2050. Teams at all levels are mobilised to innovate and create solutions that will help decarbonise the construction sector. All these efforts enabled us to reduce Scope 1 and 2 CO₂ emissions by 34% in 2023, compared with 2017.

What exactly will the role of innovation, R&D, and technology be in this fight? Some people believe them to be the solution, while others see them as a problem…

P.H.: For me, innovation is an essential part of the solution. We need to reshape our economy and our funding methods in order to stimulate and redirect investments toward more ecologically and environmentally virtuous activities. So far, the technical challenges have always been overcome. The rise and extremely fast rollout of AI may help with this.

“Innovation is an essential part of the solution.”

Are regulatory constraints, such as the European CSRD directive, which came into force this year, a good solution?

P.H.: They are crucial, because they provide impetus and also a framework, without which, unfortunately, our society would not move forward. In contrast, here in Hong Kong, for example, where the regulatory framework around construction doesn’t provide sufficient incentive, it is more difficult to move forward with sustainable development. Regulation is clearly an accelerating factor, but it must be drawn up together with the stakeholders involved. It also needs to be audited and reviewed to ensure its effectiveness.

Within companies, how do you harness internal sources of energy, such as governance bodies, management and employees?

P.H.: Every company to have successfully incorporated sustainable development into their business model has had the support of convinced and motivated managers. At Saint‑Gobain, sustainable development targets are included in our corporate KPIs. This is backed by a collective awareness, with all employees brought on board through awareness and training programmes. The tools already exist, from the Climate Fresk to applications that measure the carbon footprint for an individual, product or process. The Saint‑Gobain Group is aiming for 80% of its employees to have attended Climate Fresk workshops by 2025, and we are well on the way to achieving this target in Hong Kong. Ultimately, we have to integrate this approach into our employees’ professional and personal lives. This includes linking a portion of employee bonuses to sustainable development objectives.

 What are the main crossover points? What are the obstacles? What lessons have you learned from your experience in Saint‑Gobain’s Surface Solutions division?

P.H.: Internally, the obstacles may relate to feelings of having to manage more-cumbersome procedures. At Saint‑Gobain, we removed these barriers by fully integrating corporate social responsibility into our actions and Group strategy, which allows a meaningful alignment between our vision – to become the worldwide leader in sustainable construction – and our purpose – Making the world a better home. CSR is not seen as a constraint, but rather a differentiating lever. As well as your in-house teams, you also have to get your customers, your suppliers and your entire value chain on board. Externally, the absence of regulation and an inability to persuade customers to follow suit can also hinder your efforts.

 You have been CEO of Saint-Gobain Hong Kong & Macao since January 2024. The consequences of global warming are spectacular in that part of the world. Is this issue a real concern for political and economic leaders?

P.H.: The fight against GHG emissions is a stated priority for the Hong Kong authorities. But in the construction sector, the lack of a legal and regulatory framework is stifling initiatives. There are some things in place, like green label schemes. The challenge in this region lies in mobilising the entire value chain, including private stakeholders such as SMEs for which this is still not a top priority. We need to make this fight an opportunity to stand out in the marketplace and raise awareness among public and private stakeholders. In Hong Kong, many buildings would benefit from renovation to improve their energy performance. A sense of solidarity and synergy is developing between groups finding themselves aligned on this issue. It’s creating real momentum.

What are your road map and action plan for sustainable development at Saint-Gobain Hong Kong & Macau?

P.H.: There’s still a way to go in raising awareness and mobilising all our teams around CSR and innovation issues. The business unit that I manage, which was acquired by Saint‑Gobain in 2016 and employs 120 people, is culturally not particularly attuned to these issues. Waste is not really sorted here. Initiatives in that direction are in their infancy. I launched a huge training programme through Climate Fresk, which is a game designed to raise awareness among employees and their families of low-carbon building construction and waste collection operations. In 2024, I set sustainable development targets for every member of my Executive Committee. This will be extended to all managers in 2025.

“Regulation is an accelerating factor, but it must be drawn up together with the stakeholders involved.”

What about for your production base?

P.H.: Saint‑Gobain is the only mortar producer in Hong Kong. We have set ourselves environmental footprint reduction targets of 33% for CO₂ (Scopes 1 and 2), 50% for water usage, and 80% for non-recovered waste by 2030. For the supply chain, we are educating our suppliers to show them that we can have common interests in this area.

In terms of the transportation and dispatch of raw materials, although we have no direct control over this activity, we are encouraging logistics providers to convert their vehicles to electrical and hydrogen power. We are also working on our employees’ carbon footprint by providing charging points for their electric vehicles and installing solar panels on our buildings for our own energy consumption.

In terms of innovation, our R&D teams are working to create mortar formulations using less cement, which has an extremely high carbon footprint. But this means finding substitute materials, in the form of waste generated by other industries and locally available in abundant quantities. Our low-carbon glass, Oraé, which emits 50% less CO₂ than conventional glass, launched in 2022 and recently entered production in India. This will enable us to supply our markets in Asia.

 In terms of growth, decarbonisation, technology, etc., what are the main differences between this part of Asia and the Western World?

P.H.: There are significant climate constraints in this region. In these warm, humid zones, the durability of materials is affected. We therefore have to innovate differently to adapt to these specific conditions. More generally, awareness of global warming needs to be further reinforced. Schools in Hong Kong should have classes about sustainable development, for example.

 One of your missions is to promote the sciences among women and girls. How is that going?

P.H.: I was pleasantly surprised when I arrived here – there are many female business leaders and senior managers. Saint‑Gobain is highly engaged in this area – the CEOs of Malaysia/Singapore, Indonesia and Thailand are all women. But it remains difficult to recruit women to technical roles. In some parts of Asia, the cultural burden still weighs heavily, and it can often be difficult for a woman to emancipate herself.

What are your sources of inspiration in terms of management, heading a business, and sustainable development?

P.H.: Having worked in various countries, I’m an admirer of those French companies that have been able to integrate sustainable development objectives and transform their asset portfolios accordingly, especially those that have become mission-based enterprises. Their efforts are particularly important considering that the fight against climate change is above all a shared fight.

12/12/2024