Redefiners Podcast Summary

Episode: Putting Sustainability Talk into Action with Former Enel CEO Francesco Staracci
Release Date: September 25, 2024
Hosts: Hoda Tahoun & Clarke Murphy

Introduction

In this episode of Redefiners, hosts Hoda Tahoun and Clarke Murphy engage in a compelling conversation with Francesco Staracci, the former CEO of Enel. Francesco shares his extensive experience in transforming Enel into a global renewable energy powerhouse, offering invaluable insights into sustainable leadership, technological innovation, and the future of the energy sector.

Transforming Enel into a Renewable Energy Leader

Francesco Staracci discusses his tenure at Enel, emphasizing that the transformation towards renewable energy was a collective effort driven by a clear organizational purpose.

Francesco Staracci [04:32]: "Look, this is not me that transformed the company into something else. It's the company that transformed itself."

He highlights the importance of redefining the company's purpose to "empower sustainable progress," which galvanized the workforce to embrace change and invest in renewable technologies. This shift was not merely ideological but a strategic move to ensure long-term sustainability and societal acceptance.

Leadership and Corporate Culture

Francesco elaborates on fostering a culture of sustainability within Enel. By stripping away non-essential layers and focusing on the core mission of serving society sustainably, he empowered employees to innovate and adapt.

Francesco Staracci [07:34]: "It was more an issue of eliminating layers of useless stuff that was painted on top of that... We just went down back to, we are a service that is fundamental for society and we want to do it in a way that society accepts it more and more."

This cultural shift made the transition to renewable energy less of a battle and more of an organic evolution driven by shared values and collective effort.

Technological Advancements and Digitization in Energy

Francesco details Enel's pioneering efforts in digitization, starting with the installation of smart meters in 2001 and the subsequent development of smart grids. The integration of technology was pivotal in managing a vast number of small renewable projects efficiently.

Francesco Staracci [16:30]: "We quickly migrated to the cloud... This enabled us to accelerate the digital transformation in a big, big way."

He underscores the critical role of digitization in scaling renewable projects, enhancing operational efficiency, and improving customer experiences. The strategic decision to adopt cloud technology facilitated rapid growth and innovation within the company.

Perspectives on AI and Technology

When discussing the potential of AI, Francesco maintains an optimistic view, acknowledging both its benefits and risks. He believes that technologies like generative AI are neutral tools whose impact depends on their application.

Francesco Staracci [21:48]: "Technology is just technology. There's nothing wrong with it or bad with it or good with it. It's just the way we use it makes it change."

Francesco emphasizes the importance of harnessing AI for positive progress while being vigilant about its ethical and societal implications.

International Partnerships and Sustainability

Francesco advocates for stronger collaborations between the private sector and global initiatives to drive sustainability. He criticizes the misconception of a trade-off between climate action and profitability, asserting that sustainability enhances value creation.

Francesco Staracci [23:59]: "It's an enhancement of value creation... when people say, 'there is a trade-off between climate and money,' no, no, it's not a trade-off."

He calls for leveraging the goodwill and expertise within global coalitions to accelerate sustainable practices across industries.

Climate Week and Global Decarbonization Efforts

Addressing Climate Week, Francesco highlights the imperative of including emerging economies in the decarbonization journey. He stresses the need for adequate funding and support to ensure that the Global South can participate effectively in sustainability initiatives without repeating past mistakes.

Francesco Staracci [29:11]: "Do they find the money to do that? Do they find the funds to, to really do this properly?"

He remains hopeful that influential nations like China and India will take the lead in fostering equitable and effective global climate action.

Personal Insights and Leadership Lessons

Francesco shares pivotal moments from his career that shaped his leadership philosophy. He reflects on his early experiences in the construction industry, where he witnessed firsthand the power of motivated teams to achieve seemingly impossible goals.

Francesco Staracci [25:37]: "An incredible moment of discovery of what mankind can do if properly motivated."

He offers practical advice for leaders undergoing business transformations, emphasizing the importance of understanding the company's identity independent of one's personal influence.

Francesco Staracci [32:30]: "Think about what the company looks like without you."

Rapid Fire: Getting to Know Francesco

In the closing segment, hosts Hoda and Clarke ask Francesco a series of rapid-fire questions to uncover his personal preferences and leadership philosophies:

• Languages:

  Francesco: "I would like to learn Russian."
  Reason: "Because I think we need to speak a lot more between us and them."

• Advice for Leaders:

  Francesco: "Think about what the company looks like without you."

• Wish Learned Sooner:

  Francesco: "I wish I would have understood sooner how this sustainability game was."

• Recommended Book:

  Francesco: "A book by Ed Conway about materials that shape the world."

• Admired Leader:

  Francesco: "I admire incredibly Kemal Ataturk."

• Optimism about Climate Crisis:

  Francesco: "I'm optimistic about the climate crisis. Technology works in an exponential fashion."

Conclusion

Francesco Staracci's insights underscore the power of purpose-driven leadership and the pivotal role of technology in driving sustainable transformation. His optimistic outlook on the climate crisis and belief in collaborative efforts between sectors offer a hopeful vision for the future. Throughout the conversation, Francesco emphasizes that with the right motivation and strategic thinking, substantial positive change is not only possible but achievable.

Clarke Murphy: "Francesco, your optimism and visionary approach truly embody the spirit of a Redefiner. Thank you for sharing your remarkable journey and invaluable insights with us."

For more inspiring conversations and leadership insights, listen to Redefiners on your preferred podcast platform or visit russellreynolds.com.