In addition to the topic of virtual leadership or leadership at a distance, the topic of lateral leadership, i.e. leadership without authority to issue directives, is becoming increasingly important in companies. Eighty percent of managers are convinced of this. This is the conclusion of the study "Alpha-Collaboration - Leadership in Transition; Perspectives for Collaboration in the Future," which was conducted by the Institute for Leadership Culture in the Digital Age (IFIDZ), Frankfurt. For this study, 482 executives in the DACH region were surveyed online and 51 in in-depth interviews.

As a cause for this, the executives cite the fact that the core services of the companies are increasingly being provided in cross-divisional and often even cross-company team and project work. This increases not only the importance of online communication, but also its dependence on employees from other areas and on external suppliers and service providers to achieve goals.

Managers are in demand as relationship managers

Managers have no authority to issue directives to these partners. They are therefore increasingly faced with the challenge of inspiring and "leading" people whose superiors they are not. In their view, the leadership roles of "influencer/relationship manager" (76 percent) and "leader/spiritualizer" (80 percent) are gaining in importance accordingly.

Almost all managers also expect the demands on leadership to continue to rise - particularly in the areas of "team leadership" (80 percent) and "employee leadership" (68 percent). A correspondingly large number see a great need for development in the area of "self-leadership/management" (37 percent), in addition to "digital competence" (53 percent). They also see a great need for development in all areas that are closely linked to their ability to build sustainable relationships - for example, relationship management (44 percent) and communication/motivation (41 percent).

Leading at a distance is often viewed critically

As a central point as to why they will need different competencies in the future, the managers repeatedly refer to virtual leadership and increased work in the home office. It is striking that this is the case: Most managers consider remote leadership to be a "necessary evil" due to the general conditions. Only 30 percent believe that this form of leadership has more advantages than disadvantages.

Three quarters of managers (78 percent), on the other hand, see a risk of a decline in the quality of the relationship between employees and themselves when managing at a distance. Other risks identified by many include a decline in identification with the company (52 percent), excessive demands on employees (42 percent) and a drop in their motivation (29 percent). With regard to the topic of leading at a distance, many managers see a need for development in the areas of communication (43 percent), digital competence (38 percent), team leadership/development (33 percent) and motivation (32 percent).

The signaled need for development largely corresponds with the results of the study "Alpha Intelligence: What tomorrow's managers need", which IFIDZ conducted back in 2014. It came to the conclusion that managers in the modern working world must develop into relationship managers or "alpha-intelligent personalities" who are characterized by a high level of "personality intelligence," "relationship intelligence" and "digital intelligence.

The future belongs to "Alpha Collaboration

Many managers also see it this way, partly because a change in awareness has obviously taken place among them. For example, it was noticeable in the personal interviews: When managers talk about team leadership today, they usually refer not only to the employees who report to them in disciplinary terms, but also to such network partners as employees and managers in other areas as well as external partners such as service providers and customers. In other words, they have overcome the classic divisional or pillar thinking and instead think in network-like contexts.

In addition, many executives have obviously already internalized that leadership aimed at improving alpha collaboration - i.e., cross-divisional, cross-functional and cross-company collaboration - also requires a partly changed self-image as a manager. This is indicated by the fact that the majority of them expect the leadership roles of "leader/starter" and "influencer/relationship manager" to continue to gain in importance.

"Alpha Collaboration" requires a culture of trust

This is relevant insofar as mutual trust is a central success factor in both distance and lateral leadership. The study concludes that companies already have a culture of collaboration and leadership, which is increasingly relevant for success in the VUCA world. These need to be expanded.

For more information about the study "Alpha Collaboration - Leadership in Transition; Perspectives for the Collaboration of the Future", please visit the IFIDZ website (www.ifidz.de). There you can also order the 58-page study and a free management summary for 39 euros.

You prefer to go to a meeting instead of advancing strategic thinking. You'd rather check emails than talk to an important person. You'd rather perfect the design of the presentation instead of testing the effectiveness of the message. And so on. There are hundreds of instances when we do the unimportant things first and put off important things.

Why is that? Why do we sabotage ourselves? Why do we leave things undone even though we know full well that they have to be done anyway? Well, the answers to these questions fill entire bookshelves and video platforms. So it seems relevant. The problem: most advice focuses on techniques to stop procrastination. That's all well and good, but there are root causes underlying the phenomenon that hardly anyone addresses.

Here are three fundamental causes of procrastination that I strongly recommend considering (with lasting positive effects on your productivity and motivation):

1. No energy.
   You know how it is: you are most likely to get distracted and stop important activities when you have little energy left. Low energy is one of the most common reasons for procrastination. Even great methods won't help: when you're mentally tired, your subconscious will do everything it can to steer you toward relaxing activities. The good news: energy can be increased in a targeted way. There are various good methods for this. Contact me if you need ideas on how to do this.
2. No clarity.
   It's like a law: Lack of clarity leads to uncertainty and delays You know this from your own experience, too: If you don't know exactly what you have to do next to get to the goal, there's a high probability that you'd rather not get started. By the way, this is also one of the big levers for higher productivity in your team: Create more clarity, namely about goals, steps to the goal, dealing with obstacles and so on.
3. Poor environment.
   The environment has an incredibly strong influence on us - and also on our productivity. As a rule of thumb, the more reasons you have around you to be distracted, the more you will put off important things. That includes objects, events and people, by the way. My tip: Reduce everything that could distract you.

Here's another idea: share these tips to help others procrastinate less. Your productivity will increase noticeably.

To the author:
Volkmar Völzke is a success maximizer. Book author. Consultant. Coach. Speaker. www.volkmarvoelzke.ch

It's that time again: The seventeen-member jury of experts headed by Daniel Läubli, partner at McKinsey & Company Zurich, has selected five finalists for the Prix SVC Wirtschaftsraum Zürich 2022 from over 100 companies in the Zurich economic region. The sponsor and initiator of the Prix SVC awards is the Swiss Venture Club, an independent association for the promotion and support of SMEs in Switzerland. With the Prix SVC Zurich Economic Area, it honors, as in other regionsThe award is given to exemplary SMEs that impress with their innovative products and services, their corporate culture, the quality of their employees and management, and their sustainable track record. A prerequisite for nomination by the jury is a strong anchoring in the region.

The 2022 finalists: Five impressive success stories from the Zurich economic region (in alphabetical order)

• Falu Inc, Rüti. For more than 55 years, the family-owned company domiciled in the Zurich Oberland has been producing machines for the production and packaging of cotton swabs and cotton pads, each adapted to the individual needs of different customers. The world-leading company is locally based, employs 20 people and is led by Guy Petignat, President and CEO.
  www.falu.com
• G. Bopp & Co. AG, Zurich. For decades, G. Bopp & Co. AG has been one of the world's leading manufacturers of metal meshes for demanding and diverse applications. While at the time of the company's foundation in 1881 it was still a matter of producing high-quality, stable and reliable screens and grids, today the meshes are often important components in highly complex processes in industry or in research & development. The company employs 200 people in Switzerland and is managed by Peter Bopp in the fourth generation.
  www.bopp.com
• Kyburz Switzerland AG, Freienstein. As an SME with over 170 employees, the company develops and produces high-quality electric vehicles for delivery and industrial companies as well as for private individuals. It is impossible to imagine our streets without, for example, Swiss Post's yellow 3-wheeled electric vehicles. The company has been an international leader in high-quality mobility and transport solutions for more than 30 years and is managed by Martin Kyburz.
  www.kyburz-switzerland.ch
• Planzer Transport AG, Zurich. Planzer was founded in 1936 and has been a family-owned stock corporation since 1966. Today, the logistics company employs more than 5300 people at 68 locations in Switzerland and neighboring countries, including 370 apprentices. Since 2018, the family-owned company has been operating in the parcel business with the "Planzer Paket" brand, delivering shipments weighing up to 30kg to private and business recipients. Here, the company wants to be the most personal provider with the best employees and a great proximity to customers and recipients. A special focus is placed on the topic of sustainability. Thus, over 60 % of the shipments cover the majority of the transport distance by environmentally friendly rail.
  www.planzer-paket.ch
  www.planzer.ch
• South Pole, Zurich. South Pole was founded in 2006 by ETH graduates as a startup and is today led by CEO Renat Heuberger. The company is both a global market leader in climate protection for companies and in the development of climate protection projects. It develops and implements emission reduction projects and strategies that transform climate protection into long-term business models for companies, governments and organizations around the world. The motivation and expertise of more than 800 employees in 22 offices on 6 continents are the basis for the success of more than 1000 ongoing climate protection projects around the globe - projects that not only save CO2, but also improve the quality of life of millions of people in over 50 countries.
  www.southpole.com

The award ceremony will take place on September 20, 2022, at the Kongresshaus Zurich. 1,500 guests from business, science, politics, media and culture are expected. Nik Hartmann will host the ceremony.

www.svc.swiss

Just under half (46%) of the CFOs of companies in Switzerland surveyed every six months by the auditing firm Deloitte remain convinced that the Swiss economy will continue to grow over the next twelve months and that a recession is not yet in sight. Although this proportion has almost halved since the last similar CFO survey in September 2021, it is still a good twice as high as the proportion of those who expect growth to slump (22%). More than half (57%) expect the company's outlook to improve over the next twelve months, and only 15 percent anticipate a negative financial development.

The other key corporate indicators in the Deloitte CFO survey are also all still on the positive side. A majority (64%) of respondents still expect revenues to grow; however, six months ago, the number was significantly higher (79%). More CFOs also still expect growth than decline in general investments and in expenses such as marketing or travel. The only area where things look less positive is operating margins. Here, optimistic and pessimistic attitudes are already almost equal. One important reason for this is likely to be inflation.

War as a damper on the upswing

"Switzerland has emerged from the Corona crisis more quickly than many other OECD countries. Swiss companies have already learned how to deal with supply chain problems during the pandemic. And the rising inflation rates in the US and the EU are no longer a surprise to them either," explains Deloitte CEO Reto Savoia. "I therefore currently expect that the war in Ukraine will slow down the post-Corona recovery, but that the Swiss economy will remain on a growth path this year."

The far-reaching lifting of the Corona measures a good month ago gave the Swiss economy an additional boost. However, this has almost completely fizzled out since Russian troops invaded Ukraine. Besides the war, corporate CFOs in Switzerland see inflation as the biggest risk (see chart). This applies not least to the rising input prices that companies have to pay themselves for energy, raw materials, intermediate products or services. Just under half of the respondents (42%) expect input prices to rise by five percent or more. Of those who expect input prices to rise, just over one-third (36%) expect to be able to pass on most of the price increase to their clientele. Nonetheless, CFOs do not anticipate a marked increase in consumer prices at home and expect consumer price inflation of 2.0 percent over two years.

Companies worry less about recession, more about inflation and supply chain problems

"Inflation is back again, also in Switzerland. However, Swiss companies are showing resilience. Although they have to accept losses in margins, many companies are very well positioned to defy the price increase. The strength of the Swiss franc is not affecting the export economy as it did a few years ago," explains Alessandro Miolo, Managing Partner for Audit & Assurance at Deloitte Switzerland. While supply chains have been overtaken in terms of CFOs' risk assessment by the current war events in Ukraine as well as inflation proving stubborn in the major Western economies, they still represent a major challenge for many Swiss companies. Most companies see themselves at least slightly affected (77%), with 16 percent even reporting severe impairments. Of the affected companies, 68 percent have to pay noticeably more for raw materials and intermediate products. Around half (52%) report higher transport costs - a consequence of higher energy prices and a wide range of logistics problems. Almost as many (40%) of the CFOs complain that intermediate products are not being delivered on time and one in four (24%) that they are no longer available.

Course of the war as a great unknown

Cancellations of orders by customers, on the other hand, are hardly a problem, and fewer CFOs are talking about weak demand as a risk than in the fall. "The war in Ukraine does not seem to have had a negative impact on consumer spending in Switzerland so far. However, if it continues for longer and even intensifies or expands, people will become more cautious again and forgo vacations and purchases. Sustained inflation would also put a strain on household budgets," Reto Savoia points out. "In addition, the economic signs in Germany, our most important trading partner, are looking less positive. The coming weeks and months will therefore show whether the economic upturn in Switzerland will really continue or whether we will not slip back into a recession."

Source: Deloitte

The Human Capital Academy is conducting the Swiss HR Benchmark for the third time together with the HR Bench Institute. The HR professional associations of Berne, Basel, Zurich, Vaud, Geneva, Valais and the Association of Personnel and Training Professionals VPA are also on board. The University of Applied Sciences of Vaud and the University of Applied Sciences of Eastern Switzerland also support and accompany the project. In the last survey, 698 companies throughout Switzerland, employing a total of 1.2 million people, took part. The feedback from the participants was very positive. For example, 82% said that the survey had been important or very important to them. More than half wanted it to be conducted annually or every 2 years, and 85% found the content of the surveys to be correct.

Swiss HR Benchmark: representative insight into the HR landscape

For the current survey, data collection started on March 1, 2022. Participation is still possible until March 31. The survey is aimed at HR managers, HR directors, CEOs and CFOs. The participants contribute to the determination of representative key figures and insights into the daily work and activities in the HR landscape for the whole of Switzerland. The results reports are scheduled for summer 2022. They are dynamic and can be broken down by industry, region or company size. In addition, participants will exclusively receive the complete detailed evaluation of the study and will be invited to an event in the summer with presentation and discussion of the results. This event is organized by the HR professional associations (BGP, HR Bern, ZGP).

Time required: approx. 30 minutes

The survey consists of a general part with 16 HR topics (multiple choice, duration approx. 10-15 minutes) and HR indicators such as headcount, turnover rates, absenteeism or teleworking (approx. 10-15 minutes). The HR Bench Institute and the Human Capital Academy, which are responsible for data collection, guarantee 100% confidential treatment of all data. The information collected will be aggregated and is for statistical studies only. It is not possible to infer information from individual participants.

Interested parties are welcome to HERE register for participation in the study. The registration deadline is March 31, 2022.

Basel Area Business & Innovation has never succeeded in helping more companies set up shop than in 2021. The non-profit organization, which focuses on the development of the region's leading industries such as life sciences, healthcare and production technology and operates the Switzerland Innovation Park Basel Area, is suitably pleased. It appeals to and attracts foreign companies looking to expand, supports innovative startups and promotes high-growth initiatives. This seems to have worked well in the second year of the Corona pandemic, as demand for the Basel Area location has not diminished, according to a media release. The new record of 39 company settlements even clearly exceeds the previous year's result of 27 settlements.

Life Sciences leading

With 28 settlements, companies from the life sciences sector account for more than two-thirds of the newcomers. Of these, 7 belong to the growing innovation area of digital health. This shows that the Basel economic region is becoming increasingly popular with companies involved in digital health innovations. At the same time, the region has also become more attractive for companies in the field of industrial transformation. 5 Companies active in production and process technology have newly established themselves in the region. The companies that have settled in the cantons of Basel-Landschaft, Basel-Stadt and Jura in 2021 come from 15 countries. The USA and France each accounted for 5 of the settlements, the UK for 3. 9 newcomers came from cantons outside the Basel area.

High number of startups

The number of new company startups remains remarkably high, it adds. According to the organization, it supported 76 startups that were founded in the Basel region in 2021. Although this is 6 fewer than in the previous year, it is the second-best figure ever achieved. The Basel Area's outstanding ecosystem plays a central role in both newly founded startups and the relocation of established companies. The support programs and accelerators BaseLaunch (biotech), DayOne (digital health), i4Challenge (industrial transformation) and the broad-based venture mentoring also play a major role in the further development of the ecosystem.

Basel Area moves Innovation Park

The Switzerland Innovation Park Basel Area is also developing well, with 68 companies and 14 research groups now operating at its sites in Allschwil, Basel and Jura, as well as on the Novartis Campus. Because the Innovation Park on the Novartis Campus is fully occupied, the move to the 12th and 14th floors of a neighboring building with significantly larger space and a view of the Basel Area will take place on April 1.

Source: www.baselarea.swiss

The Zurich Logistics Colloquium has become a traditional event among experts. On May 10, 2022, it will take place for the 37th time. It is organized by the consulting firm Dr. Acél & Partner AG in cooperation with ETH Zurich. Five experts from leading companies will provide insights into their projects and successes. Participants will hear about cleverly exploited potential, practical experience and success-relevant ideas and trends. This year, the expert presentations will be held under the topical theme of "New Level Operations" held:

• No mechanical engineering without logistics: Sourcing, transportation cost trap, small quantity dilemma. Prof. Dr.-Ing. Frank Brinken, Supervisory Board VFK AG, Heidelberg, VR Precision Surface Solutions LLC, Chicago, Chairman, Founder BB Intec AG, Zug
• Change in trade: Success factor - logistics, stumbling block as opportunity, employees as key. Dr. Gesine Moritz, Division Manager Supply Chain Management, Member of the Executive Board, Woodpecker Group AG, Frauenfeld
• Digitalization meets automation: Added value data, augmented reality, digital twin. Daniel Gilgen, Deputy CEO Gilgen Logistics AG, Oberwangen, Business Unit Manager Systems
• Virtual Reality in the Workplace design: VR Engineering, Automatic Transcription in MTM. Werner Züllig, Geberit Produktions AG, Jona & Prof. Dr. Andreas Kunz, Head of Innovation Center Virtual Reality, ETH Zurich

The four practical presentations sharpen the eye for the essential, broaden perspectives and surprise with an unconventional approach. After the presentations or at the aperitif riche, there will be the opportunity to seek discussions with the speakers, en experts and guests.

The most important in a nutshell

Date: Tuesday, May 10, 2022, 5.00 p.m.
Location: ETH Zurich Lecturers' Foyer, Rämistrasse 101, 8092 Zurich
Participation: CHF 120.-, with code ORGANISATOR22 CHF 100.-
Your registration - quick, easy and convenient: QR Code or https://www.acel.ch/aktuelles/veranstaltungen/; info@acel.ch
Registration deadline: Thursday, 05. May 2022

Limited number of places!

People have been sharing since time immemorial, long before new business models emerged under the term "sharing economy. "These business models are largely limited to the private sphere," says Uta Jüttner, lecturer and project manager at the Lucerne University of Applied Sciences and Arts. For example, there are already many platforms for sharing everyday objects between private individuals - even if they are still used rather rarely in Switzerland. "In the corporate world, however, there are hardly any institutionalized processes, let alone established platforms, that would facilitate sharing among companies," Jüttner continues. This is despite the fact that sharing projects between companies would be very promising, as companies often have valuable resources such as expensive machinery and equipment that incur high costs if they sit around unused. "Many companies would have a great incentive to share certain equipment with their competitors instead of purchasing everything themselves," says the expert. Together with the University of Applied Sciences and Arts Northwestern Switzerland, the Lucerne University of Applied Sciences and Arts has investigated in the research project "SME Sharingmarket" how sharing could be supported in a targeted and structured way for companies.

Borrow from the company next door: Possibilities quickly exhausted

Reality proves that sharing is interesting for companies. "Our research has shown: SMEs in particular are already quite good at lending materials and objects to one another," notes Sebastian Huber, another HSLU lecturer and project collaborator. For example, resources are already frequently exchanged between small and medium-sized companies. "However, this runs quite intuitively and informally. If the craftsman needs an additional hand truck, he asks the company next door," the expert explains. But this form of sharing quickly reaches its limits, he adds. Unlike the drill or high-pressure cleaner that private individuals offer each other for sharing, machines and equipment from companies are often very expensive. "When such equipment is shared, additional questions inevitably arise, for example about liability or insurance," says Huber.

Bringing together demand and supply for sharing

For sharing to occur between two companies, one company must have a resource with spare capacity that the other company wants to use temporarily. This is where the difficulty begins: how do demand and supply find each other? "Disclosing one's own demand and the availability of resources is crucial and often the first hurdle in B2B sharing," explains Sebastian Huber. The results of the research project show: Participating companies must also develop a common organizational understanding of "sharing." Should sharing be as anonymous and demand-based as possible, or personal and partnership-based? The companies willing to share must also agree on the degree of external support from a platform or service provider. Once the resource has been identified and the form of transaction found, there are some agreements to be made - on transportation, insurance and costs. In order to then be able to evaluate the continuation of sharing as an alternative to procuring a resource, the companies involved in a sharing transaction want to evaluate the process afterwards. Huber: "For the companies, sharing does not necessarily have to result in a direct profit, but the effort must still be worthwhile in the end."

Economic, ecological and social sustainability as drivers

In the face of increasing international competitive pressure, SMEs in particular are looking for alternative forms of use to the classic "make-or-buy" approach - i.e. the choice of whether a device or tool is manufactured and owned in-house or purchased from a supplier. As with private individuals, sharing enables temporary access and use of a resource that a company cannot or does not want to own and operate itself for cost reasons. "In addition to savings, it increases the business opportunities to offer services or products that could not be offered without sharing," Huber says.
In the logistics industry as well as in larger production companies with high energy requirements, the ecological potential of sharing operational resources with a high CO2 footprint has already been identified for some time. "This creates a particular interest in sharing solutions for these companies and industries," says Uta Jüttner. The cooperation between companies, which is becoming closer through sharing, up to and including the mutual lending of employees, strengthens social cohesion and increases entrepreneurial flexibility in an increasingly uncertain business environment, emphasizes the HSLU expert.

Toolbox for companies and first SME sharing platform

To help companies participate in the sharing economy, the interdisciplinary research team of business economists, engineers, and psychologists created a process-oriented toolbox with four practical instruments:

1. Identify sharing resource potential,
2. Identify sharing organization form,
3. Sharing agreement and
4. Success measurement and partner evaluation.

The research project has also given rise to the start-up "Sharing Corp.", which will launch the first industry-independent B2B sharing platform for Swiss SMEs called KMUsharingmarket.ch this spring. The platform is intended to make the possibilities of sharing and the research results of the HSLU study available to a broad user group of companies in Switzerland. "The toolbox and sharing processes developed by HSLU and FHNW have already been validated in practice and form the basis for our platform KMUsharingmarket.ch," says Carla Kaufmann, co-founder of Sharing Corp. The company launched on March 18, 2022.

Not only the two universities of applied sciences FHNW and HSLU collaborated on the project, but also the companies Companymarket AG, KMU Digitalisierung GmbH, Virtuelle Fabrik Nordwestschweiz, Tschudin & Heid AG, Rero AG, Estech Industries AG, peka-metall AG, Kebo AG and Wir Bank Genossenschaft.

More information at: www.kmusharingmarket.ch and www.sharingcorp.ch

It was actually an anniversary event: 20 years ago, Armin Baumann, founder and CEO of KMU Swiss, had the idea of a networking event with presentations and discussion panels. If it hadn't been for the pandemic-related two-year interruption of the event series, Armin Baumann would have been able to welcome the audience to the 20th edition of the KMU Swiss Symposium at the Trafo Baden on March 17, 2022... But even without this round number, the event certainly had something extraordinary to offer: Despite her packed schedule, Federal Councillor Viola Amherd, Head of the Department of Defense, Civil Protection and Sport DDPS, was invited to speak at the event.

The theme of the conference was also a challenge: Are we doing as well in Switzerland as we think? What is the dependency of economic factors and do structural changes have an impact on the growth of the economy? A crisis reveals weak points. This calls for far-sighted and timely decisions, said Armin Baumann in his opening address. "Unfortunately, the situation is still one of reacting instead of acting," Baumann said.

Federal Councillor Viola Amherd on old and new threats

The crisis situation - a pandemic that has not yet been overcome and the warlike events in Ukraine - therefore made the defense minister's appearance highly topical. So is Switzerland "a nursing case" when it comes to security? Viola Amherd emphasized that the current situation shows us that security cannot be taken for granted. Federal Councillor Amherd explained how the issue of security has then become and will continue to be an increasingly central topic in politics. "Security, that's what's expected of politics," Amherd said - also with a view to the many SMEs that, while proving time and again that they can handle crises well, also need the appropriate conditions to do so. The army - "as the last insurance" - in turn must also constantly arm itself against new threat situations. "New threats, such as cyber, do not replace old ones," Amherd emphasized. But: "We have to invest in cyber defense, we still have some catching up to do." When asked whether there had been increased cyber attacks on Switzerland in connection with the Ukraine war, Federal Councillor Viola Amherd replied in the negative. "We must not panic," she said, but they are very vigilant. And when asked about compulsory military service for women as a possible solution to the "shortage of skilled workers" in the army and also as an element of equality, the defense minister had the following message: "I don't see compulsory military service for women as the first option, it would be better to finally implement equal pay."

"Nursing case" Retirement provision

In further presentations, the "care case Switzerland" was illuminated from different perspectives. Neuroscientist Claudia Thali established a connection between the promotion of creativity and future viability. The speaker used examples such as thinking "outside the box" to show that creativity helps to find solutions for the future. However, creativity needs time and space. And today's managers need to provide more of this.

Indeed, old-age provision is a "care case" - "or it could become one," according to Prof. Dr. Aymo Brunetti of the University of Bern. He pointed out a fundamental problem with the current system: Rising life expectancy coupled with the fixed retirement age. In connection with the demographic development, this leads to the fact that the number of people capable of working does not continue to increase, but the number of over-65s does. Aymo Brunetti therefore advocated making the retirement age more flexible. This means that if life expectancy increases, the retirement age must also increase. This would stabilize the system. After all, unilateral measures, such as increasing revenues to secure retirement or reducing expenditures, i.e. lower pensions, are hardly politically realistic. Josef Zopp, BVG specialist at Weibel Hess & Partner AG, which regularly compares the performance of pension funds, made similar arguments. In particular, he pointed out striking differences in the treatment of retirement assets by pension funds. Interest as the "3rd contributor" is often underestimated as a factor, which can then become painfully apparent in the amount of retirement capital. And the conversion rate - currently at 6.8 percent - would still be too high if it were reduced to 6 percent, as is currently being discussed. This is because some pension funds already apply significantly lower conversion rates today.

Future viability of SMEs emphasized

Examples of how "future viability" can be understood in concrete terms away from a "care case" were provided by the presentations of Guido Konrad (Varian Medical Systems Imaging Labs), Ernst Gisin (Stahlton Bauteile AG) and Nina Suma (Fortyseven). Guido Konrad used the example of his company to explain the added value of Switzerland for development sites of international companies. Ernst Gisin, in turn, turned his attention to the construction industry, which is also undergoing radical change. And finally, Nina Suma showed how ThermalBaden AG has contributed to the revitalization of Baden as a tourist destination with the "Fortyseven" spa. The presentations and networking opportunities were complemented by the information stands of over 20 exhibitors.

www.kmuswiss.ch

According to the "Reimagining Work and Rewards Survey" by WTW (formerly Willis Towers Watson), a leading global consulting firm, 72 percent of Swiss companies are barely able to attract new talent - or at least have problems attracting new employees. This is a massive increase compared to 2020. Because back then, "only" 29 percent of respondents reported having difficulties recruiting employees. Five in ten companies (48 %) also believe it will be difficult to retain their employees* this year - a significant increase from 17 % in 2020. A total of 1650 employers worldwide took part in the survey, which was conducted between October 28 and December 10, 2021, including 25 from Switzerland. The respondents employ 11.9 million people.

Acute shortage of skilled workers in the digital sector

The results of the aforementioned study also show that the problems are particularly acute when it comes to digital tasks. 95 % of respondents have difficulty recruiting or retaining employees with skills such as cybersecurity, data analytics and UX. More than half (57 %) say they have problems with labor supply for sales roles.

The upheaval caused by the pandemic has greatly changed the way companies operate. While a quarter (29 %s) believe they will reach their "new normal" in workflows by the second quarter of this year, 14 %s don't expect things to settle down until 2023 or later. Chloé Karam, Director Employee Experience Consulting at WTW, says, "Companies across all industries are under significant pressure to adapt to a new business environment and profound workforce changes. There is currently no greater challenge than hiring and retaining employees. Unfortunately, recent survey results show that companies believe the situation will get worse, especially for employees with digital skills."

Few companies have comprehensive compensation strategy

Only 12 % of Swiss companies have clearly differentiated their total compensation offering from that of their competitors. 40 % effectively communicate their total compensation strategy to their own employees so that they understand and value the total offering. The survey also showed that high-performing companies are more likely to realign their total compensation philosophy, which spans compensation, benefits, career and well-being. Many want to place more emphasis on helping employees develop their careers within the company.

Marco Schmid, Associate Director Work & Rewards at WTW, says: "In this extremely competitive labor market, it is important to stand out as a company. Differentiating the total rewards offering is one way to do this. For companies, this means not just asking 'How much should we pay? ' but 'How should we reward our employees? ' This includes a greater focus on non-financial elements such as professional development." In short, successful companies need to rethink their overall compensation strategy to compete in a tough labor market.

Attracting new talent: What can companies do?

The following recommendations for action can be derived from the findings of the WTW survey:

• Be bold: leadership and human resource capabilities must be developed to address current opportunities and challenges.
• Be human: Setting new strategies and solutions is about unleashing the power of people.

In implementing the two strategic directions, leaders should focus on the following:

• Integrated labor and compensation strategy: an integrated labor and compensation strategy linked to new business and financial strategies and accelerated by technology.
• People-focused, data-driven: Data-driven employee and work insights to inform, measure, and refine new work and compensation options.
• Enable and Sustain: Pilot and pivot projects as needed to embed new capabilities into the organization and employee experience.

Source: WTW

The Federal Council's climate targets stipulate that, from 2050, Switzerland should not emit more greenhouse gases into the atmosphere than are absorbed by natural and technical reservoirs. The waste incineration plants (MWIP) have an important role to play here. They are responsible for 5 percent of Switzerland's total CO2 emissions. In the future, however, new technologies will make it possible to capture and permanently store CO2 produced during waste incineration. This will reduce CO2 emissions from MSW to zero. The capture of emissions from the biogenic fraction of waste (waste wood) also leads to a reduction in the CO2 concentration in the atmosphere (negative emissions) when stored permanently.

Capture and storage of CO2

In order to achieve the net zero target, technologies for the capture and storage of CO2 (carbon capture and storage, or CCS) must be used. In particular, all MSWIs should be equipped with carbon capture in the longer term. At the same time, the safe and permanent storage of several million tons of CO2 per year must be ensured. The Association of Operators of Swiss Waste Utilization Plants (VBSA) and its MSWI members are rising to this challenge and want to start immediately with the practical implementation of the ambitious climate policy goals. In a new industry agreement with the Federal Department of the Environment, Transport, Energy and Communications (DETEC), they outline how they intend to proceed in concrete terms.

Common goal of waste recycling plants and DETEC

In the agreement signed by Federal Councillor Simonetta Sommaruga and VBSA President Bastien Girod, the waste recyclers commit to investing CHF 1 million annually in CCS technologies. In addition, the association commits to commissioning a first capture plant with a capacity of 100,000 tons of CO2 by 2030 at the latest. In return, the MWIPs will continue not to participate in the emissions trading system. VBSA and DETEC have agreed on a roadmap with specific annual milestones. "Thanks to this agreement, we will set the course for building the necessary climate protection infrastructure. Together with DETEC, the cantons, universities and industry, MWIP is doing pioneering work here. We have set ourselves very ambitious goals, but I am confident that we can achieve them," says National Councilor Bastien Girod, President of VBSA.

A generational task

Before the first capture plant goes into operation at a MWIP, the CCS technology must be further developed and adapted to the specific conditions of a MWIP. In parallel, an infrastructure must also be built to transport and permanently store the CO2. In addition, all these developments must be quickly scalable: After 2030, the amount of CO2 captured must increase rapidly, to 400,000 tons by 2035, and by 2050, the technology must also be applied in the rest of industry and capture 7 million tons, according to the Federal Council. "Building this new type of climate protection infrastructure is a generational task, comparable in its considerable scale to the development of wastewater treatment in the last century," says Robin Quartier, director of the VBSA.

Review of the achievement of objectives

DETEC will closely monitor the implementation of the agreement and review compliance with the defined objectives and interim targets on the basis of VBSA's annual reporting. If this review shows that the defined targets cannot be met, the parties may terminate the agreement.

Sources: VBSA / DETEC

U-turn for net-zero efforts in the real estate sector? At last year's COP26 climate conference, many participants called for a new form of radical collaboration in the real estate sector to address the climate crisis. This is undoubtedly important. However, for these measures to have an impact, several other important issues must also be addressed.

Simplify the message

First of all, the fact that everything is unnecessarily abbreviated must be addressed. The multitude of definitions and voluntary standards in this area continues to be confusing. They are all undoubtedly well-intentioned, but often attempt to address similar challenges from different angles without taking into account their mutual interaction. The result is an almost impenetrable tangle that sometimes makes it difficult for even highly competent ESG specialists to determine what is "good" and what is not.

Fortunately, this issue is now well understood. Some common principles are emerging that lend credibility to net zero targets and provide greater clarity to investors, asset managers, and tenants on how to achieve them. These include the importance of rapid decarbonization across the value chain, near-term targets, and clarification regarding the role of voluntary CO₂-Balances.

Real estate investors have to take a number of things into account when it comes to this topic. The clearer and more standardized the key figures, the better. For example, the question arises as to how energy-efficient the building is. Are fossil fuels used? Are there renewable energy sources on site? What activities does the tenant engage in and how might this affect future emissions? And this only addresses the energy and CO₂-aspect is illuminated. Other important considerations are biodiversity, health and well-being, a circular economy, social value and transport.

Shaping the future

In the real estate sector, there are currently many exciting design and innovation concepts related to net-zero efforts. Heat pump, energy storage and building materials technologies are all being developed and improved to support the energy transition. For this to happen at the scale and speed required, investment, innovation, and policies are needed to steer businesses in the right direction. Currently, the policy measures taken to decarbonize the sector fall far short of what would be required from a scientific perspective. Take energy performance certificates (EPCs), for example. These can provide useful information about a building's energy consumption. However, they are less helpful in managing global real estate portfolios. Key EU regulations on sustainable finance, which aim to eliminate greenwashing and improve transparency, place a strong emphasis on energy performance certificates and the related concept of the zero-energy building. The problem here is that the different implementation of these concepts at Member State level makes cross-country comparison almost impossible. Currently, the same building could be classified as efficient or inefficient (according to the Regulation on sustainability-related disclosure requirements in the financial services sector) or sustainable or unsustainable (according to the EU taxonomy), depending on the country in which it is located.

Improvement of the policy measures

There are encouraging signs that the policy approach is gradually becoming more coherent and reflecting the science-based findings. For example, there are update proposals to the Energy Performance of Buildings Directive (EPBD). These are intended to provide a clear signal for phasing out the use of fossil fuels in buildings, an emissions trading scheme for the use of fuels in buildings, support for large-scale retrofits, and mandated CO₂-provide assessments. The proposals also seek to standardize the various methods used for energy performance certificates in all member states.

The carbon intensity of buildings is already of great importance and will become even more important in the future. Indeed, we recently rejected investment opportunities for these reasons. However, accurately assessing the costs of taking real estate down the path of net-zero efforts is proving difficult, especially since the route options are unclear and everyone seems to be using a slightly different map. The basis for valuation is becoming much clearer with the convergence and increasing use of voluntary standards, the filling of an academic/policy gap, and the recently updated guidance on ESG factors from the Royal Institute of Chartered Surveyors.

Net Zero Efforts: Concluding considerations

So will 2022 mark a turning point in net-zero efforts? There are encouraging signs, and the merging of voluntary standards and more clarity on policy direction will level the playing field and incentivize more rapid action. If just a little of the radical collaboration mentioned at the outset is achieved, perhaps 2022 can provide the much-needed tipping point for decarbonization of real estate. In any case, we are optimistic.

Author:
Ruairi Revell is ESG Manager, Real Estate at abrdn. He helps the real estate business protect and enhance investment performance by integrating ESG into all elements of the investment process. abrdn (formerly Aberdeen Standard Investments) is one of the world's leading active asset managers. With more than 800 investment specialists in over 30 globally networked locations, the company manages over CHF 575 billion in assets (as of 2021).

www.abrdn.com