Leading the change for a business-driven sustainability
Paolo Magaldi, CEO Magaldi Power
According to the 2024 Emission Gap Report published by the United Nations on October 24th, annual greenhouse gas emissions are not decreasing but are actually increasing. What's more, the governments of major fossil fuel-producing nations are planning to produce more than double the amount of fuels by 2030 than what is compatible with the 1.5°C limit for global warming. If it does not lead to effective and immediate actions to reverse this trend - as the commitments made in recent years have largely been unmet - COP29, scheduled in Baku, Azerbaijan, until November 22, must at least serve as a catalyst for deep reflection on the role each of us can play in reconciling development and sustainability. Starting with companies.
The role of enterprises in the transition to a sustainable and circular economy is, in fact, becoming increasingly central. The recent report by Bloomberg, the "Climate Policy Factbook" (link), clearly illustrates how G20 countries still have a lot of work to do to make their climate policies more effective. Leading companies must rise to the challenge by adopting advanced technologies that go beyond energy efficiency, incorporating the principles of the circular economy and emission reduction. It is time to demonstrate that industrial innovation can play a decisive role in the ecological transition, anticipating and – so to speak – inspiring governments towards the goals of the Paris Agreement.
Italy and its Leadership in the Circular Economy
Bloomberg analysts emphasize the urgency of accelerating the transition to a circular economy, an area in which Italy holds a leadership position. In 2023, our country achieved a resource productivity of 3.6 euros of GDP for every kilogram of resource consumed, 62% higher than the EU average, surpassing economies such as France and Germany. Italy also stands out in terms of the circular use of materials: in 2022, it reached 18.7%, compared to the EU average of 11.5%, ranking just behind France (19.3%). These results confirm Italy’s national excellence in sustainable resource management, a leadership that must be preserved and further enhanced.
MADAM: Urban Mines for a Circular Economy
Magaldi Power addresses these challenges with the MADAM – Magaldi Dry Ash Management system, an innovation in the management of IBA incinerator bottom ash, transforming it from waste into valuable resources. The MADAM technology integrates a dry extraction process, based on our Ecobelt® WA, which cools and transports heavy ash without the use of water, thus reducing environmental impact and management costs. In this way, the need for the treatment and disposal of contaminated water is eliminated, making the system safer and more sustainable. Additionally, the technology includes an ash treatment process that allows for the recovery of over 90% of the metals contained in the IBA, preventing the release of harmful substances. MADAM offers a practical solution to harness the so-called “urban mines”: by transforming waste into resources, we reduce the need for raw materials extracted from nature and minimize environmental impact. With MADAM, Magaldi Power not only reduces emissions, but also contributes to closing the material cycle in a true circular economy.
MGTES: A dependable solution for industrial decarbonization
Another key aspect of decarbonization is the adoption of efficient and sustainable energy storage solutions. MGTES Magaldi Green Thermal Energy Storage represents one of the most advanced technologies for energy storage, essential for the industrial sector. MGTES, a thermal storage system based on high-temperature fluidized sand, meets this need by allowing the storage of energy from renewable sources and releasing it in a scheduled and safe manner, reducing the reliance on fossil fuels and, therefore, CO₂ emissions.
Ed Freeman's Lesson: The environment as a stakeholder
As shown in the "Climate Policy Factbook", the gap between climate commitments and actual actions is still too wide. Companies can and must take the lead in driving change. In fact, they already are. They are leading through research, technologies, and the challenges they tackle daily to meet increasingly complex needs with a focus on environmental and economic sustainability. We, as Magaldi, are doing our part.
Following the teachings of Ed Freeman, a pioneer of ethical business, we believe that the role of companies is not only to generate profit but to create value for all stakeholders. In his work published 40 years ago, Strategic Management: A Stakeholder Approach, Freeman proposed a revolutionary vision: companies must answer not only to shareholders but also to the environment, the community, and all those involved in their activities.
Driven from its inception by a deep sense of innovation and a commitment to finding increasingly sustainable solutions tailored to the needs of our clients, Magaldi feels strongly about the importance of a concrete and lasting commitment to sustainability. Our technologies, with MGTES and MADAM being two recent examples, represent the contribution our company offers for a future where development and environmental respect are not in contradiction. COP29 is an opportunity to emphasize how important it is for enterprises to play their part in promoting responsible capitalism that is attentive to stakeholders, as Ed Freeman envisioned forty years ago. Only a collective commitment, based on ethical values and innovation, can guide us toward a sustainable and prosperous future for all generations.
