Aitken Spence, among the oldest conglomerates rooted in Sri Lanka and expanding its footprint across Asia, the Pacific, and Africa, is unwavering in its commitment to promoting sustainability throughout its diverse operations. With a broad spectrum of business interests spanning hotels and resorts, destination management, airline GSAs, maritime and port services, freight forwarding and courier and air cargo, integrated logistics solutions, printing and packaging, apparel manufacture, plantations, power generation, financial services, elevator agency, BPO services, and property management, Aitken Spence plays a pivotal role in various sectors.
Champions of sustainability within the company, work to implement the company’s comprehensive sustainability strategy across the Aitken Spence group and contribute significantly to identifying operational priorities for action. Some of these champions who have demonstrated significant progress in their strategic efforts over the last year have come together to share valuable insights into their success stories. Among them are Yasangi Randeni, General Manager of Corporate Strategy and Sustainability for the Aitken Spence Group; Rishard Preena, Head of Sustainability Operations – Hospitality at Aitken Spence Hotels; Malinda Ekanayake, Head of Sustainability – Health and Safety at Aitken Spence Travels; Ishafir Izzadeen, Chief Sustainability Officer at Aitken Spence Plantations; Janitha Ekanayake, Assistant Vice President of Operations at Aitken Spence Power and Widya Karunaratne, Head of Sustainability at Aitken Spence Logistics.
Can you share insights into the sustainability strategy at Aitken Spence?
Yasangi: At Aitken Spence, our commitment to sustainability is deep-rooted within our strategies with a journey of learning and growth spanning over two decades. The recognition we receive for our achievements is a testament to the tireless efforts of both past and present Spensonians who have worked to integrate sustainable practices into our core business processes across the entire group.
What sets our strategy apart is our proactive approach to addressing sustainability challenges at their roots. Instead of simply offsetting impacts, we strive to minimize if not eliminate them through innovative and consistent changes in our operations. We prioritize substantive solutions such as; emission control and investments in renewable energy over projects like tree planting; sustainable economic growth and job creation to foster long-term community development rather than sporadic charitable acts. In essence, our effort is to ‘Build Better Before’, recognizing that systemic and proactive control of impacts is essential, as rebuilding from damage to delicate environmental or social systems may be a luxury beyond our reach.
Our strategy is built on a systematic approach to sustainability, beginning with the identification of impacts and followed by targeted interventions. Across Aitken Spence operations, we maintain over 180 management systems dedicated to environmental and social impact control, with more than 600 team members actively working to implement necessary actions. We align our operations with internationally recognized benchmarks such as the UN Global Compact, which serves as a guide to maintaining high standards of corporate responsibility. This ensures that our interventions remain relevant and effective in addressing local and global challenges. Our biggest advantage is that our top management actively monitors and drives the development and deployment of our sustainability strategy, ensuring its effective rollout across the group. Through this comprehensive approach, Aitken Spence not only leads in sustainable business practices but also sets a benchmark within the industries in which we operate.
What are the advantages of having management systems and how do you keep these practices consistent throughout the local and international properties of Aitken Spence Hotels?
Rishard: Sustainability isn’t just a commitment for us; it’s woven into the very fabric of our operations, deeply rooted in our heritage. From the moment our guests check in until they check out, we employ robust, time-tested management systems to streamline our energy, waste, and water management processes. This ensures consistency across all our Strategic Business Units (SBUs), regardless of their geographical locations.
Our dedication to sustainability seamlessly extends to our overseas operations as well. Here, we implement standardized best practices and continuously monitor and strive to improve performance. By prioritizing sustainability on a global scale, we not only reduce our environmental impact but also cultivate a positive culture of responsibility and innovation throughout the organization.
How does Aitken Spence Travels ensure control over suppliers?
Malinda: Aitken Spence Travels partners with a vast network of over two thousand suppliers, providing essential services for our daily operations. Our supply chain management adheres to industry-leading standards such as Travelife, ISO 14001, 9001 and 45001, accompanied by a rigorous sustainability code of conduct that aligns with international best practices. Regular audits and training sessions conducted for our suppliers and service providers are integral to our commitment in maintaining high standards across our operations.
At the core of our company philosophy is the belief in creating shared value and enhancing the social and economic well-being of our stakeholders, as well as the local communities and environment in which we operate. We are dedicated to fostering sustainable development and making positive contributions to the destinations we serve.
How does Aitken Spence Plantations nurture and uplift the community around it?
Ishafir: Elpitiya Plantations PLC is dedicated to enhancing community well-being through our sustainable initiatives. Central to our efforts is the welfare of our workers, whom we support by providing a nutritious mid-day meal, ensuring they remain nourished and energized throughout the day.
We also place a strong emphasis on education, offering free school stationery, and access to libraries, and computer labs. These resources empower children with opportunities for learning and growth, fostering a brighter future for future generations.
Furthermore, our commitment to good health is reflected in the provision of medical facilities and nutritious meals at our creche facilities, ensuring the well-being of both workers and their families.
In addition to these initiatives, we strive to ensure access to essential goods through modern co-op shops, making daily necessities readily available to our community members. Moreover, we actively contribute to community development by providing new housing options, as well as improving water and sanitation facilities.
In a country where renewable energy is not the norm, does this pose challenges to your operations at Aitken Spence Power?
Janitha: Recent developments in Sri Lanka’s power sector show a notable trend towards Renewable Energy (RE). However, the implementation and operation of Renewable Energy Power Plants (REPPs) have posed significant challenges. While the government has approved a variable tariff linked to macroeconomic factors, this has not been extended to REPPs already in operation. Consequently, the fixed tariff currently in place fails to account for economic fluctuations, jeopardizing the financial viability of existing REPPs.
Moreover, delays in payments by the utility, the Ceylon Electricity Board (CEB), compound the challenges faced by REPP operators. These delays create pressing issues in the day-to-day operations of REPPs, hindering their sustainability.
Addressing these key issues is paramount to ensuring the long-term viability of REPPs, including pioneering projects such as the country’s first Waste-to-Energy Power Plant operated by Aitken Spence.
What are the sustainable initiatives implemented by Aitken Spence Logistics and what can we expect in the future?
Widya: At Aitken Spence Logistics, we are committed to sustainability across all our operations, with the latest testament being the cutting-edge Container Freight Station (CFS) spanning over 100,000 square feet. This facility not only provides comprehensive supply chain solutions but also boasts advanced features for storage, inventory management, and distribution, promising to cater to the Colombo market within a mere four-hour timeframe.
In the realm of sustainability, several initiatives have been proposed and implemented. These include measures to reduce carbon footprint such as the installation of solar panels at four sites, which not only power operations but also contribute to the national grid. Additionally, the CFS is equipped with battery-operated forklifts to minimize reliance on traditional fuel sources. Moreover, rainwater harvesting systems have been integrated into the infrastructure, alongside specialized water treatment plants that ensure discharged water meets environmental standards before entering natural bodies.
Furthermore, the company adheres strictly to international benchmarks and guidelines such as SMETA, C-TPAT, and ISO (14001 for environment and 45001 for OHS), underscoring our commitment to upholding industry standards and best practices.
In a bid to foster community development, we initiated programmes such as teaching English language to school children in the neighbourhood, aiming to empower future generations with valuable skills and opportunities. Measures such as the introduction of water filtration units ensure easy access to safe drinking water for all, benefitting both the community and the employees.
Looking ahead, future investments are already in the pipeline towards supporting the company’s ambitious plans to achieve net zero emission status. Our plans include further increasing renewable energy generation on the CFS rooftop. Additionally, ‘Defensive Driving’ sessions for drivers are in the pipeline, emphasizing behavioural safety as a crucial aspect of responsible transportation are among some of the initiatives that we have planned.