Day 1. in Mexico - The Sustainable Solution

Today is the first day of the ‘Local and Regional Leaders World Summit’ in Mexico City. Invited by Siemens, who is one of the summit’s main sponsors, I went to the Siemens Dome to get a first hand impression on the company’s take on today’s infrastructure technologies and their perspective on the future of the sustainable city.
And there is no doubt that Siemens is taking up the challenge of being one of the future big players in the sustainable market. As the ‘mega trends’ in the energy supply business is primarily being defined by a desire for GHG emissions reductions and a dramatically increasing energy demand, Siemens sees themselves as a key player with emphasis on both smart grid solutions and renewable energy.

The smart grid offers great opportunities for both end-users (e.g. the cities) and the supplier of energy to optimize the use and minimize energy waste. Already applied in Boulder by Xcel Energy, the United States' largest public electricity utility, the smart grid seems to have benefits for both the environment (reduced carbon emissions) and the end-users energy economy, while at the same time increasing awareness of the households energy use. Read more about Boulder's Smart Grid HERE. In addition to the traditional energy supply systems, such as oil, gas, coal and nuclear energy, that Siemens still develops, the company is also committed to the development of renewable energy sources. Thus Siemens has a display of both solar, wind, geothermal, and wave energy at the dome.

Especially off shore wind turbines is of interest, since it is a market where the company is competing with the Danish dedicated wind turbine company Vestas. As an example Siemens has been building the largest off shore wind farm in the world just 27 – 35 kilometers of the West Coast of Jutland, Denmark. The wind turbines have a capacity of 209.3 MW and delivers green energy for more than 200,000 homes in Denmark. But one should not be fooled. It is not out of their good heart that we are talking green technology and sustainability. “Siemens will do what the market demands” – and yes, that might be both obvious and logical to most people. There is no doubt that the marked should be one of the main drivers behind a sustainable urban development. But Siemens are more than aware that corporate social responsibility not only is a way to meet demands from NGO’s, politicians and clients, but is a great tool to strengthen the company’s brand.

According to the Danish independent think tank Monday Morning, more than 80 % of all companies with more than 100 employees in Denmark work with sustainability and social responsibility. A little less than 60 % of these choose to do so to strengthen the company’s image. This is not in any way bad, and it is hopefully the way we will be able to spur more sustainable innovations in the future. But we have to be aware of the market’s limitations in relation to sustainability. We still need the pioneers, clients and researchers who will set the standard through ambitious orders and take chances in a sector where strong technological development is the future. And of course, Siemens won’t do so as long as it isn’t profitable.

The next four days Maria will be blogging from the main conference and additional exclusive events in Mexico City.