sekem insight

SEKEM‘s Journal for Economy, Culture, and Society in Egypt

InsightNr. 88 - December 2009

Copenhagen is history. Not so our daily struggle against climate change, a fact that was sometimes easy to overlook in the heated and near-permanent reporting from Denmark. Already during the weeks before the event one could have the impression that the fate of the entire world hinges on the successful conclusion of the Copenhagen event.

Copenhagen certainly was an event of global importance. The fact that many delegates could not stop proclaiming the failure of the conference long before it had begun may often have been smart political tactics. It also documents the inability of many to look at what is necessary in pragmatic ways and act accordingly.

As important as Copenhagen was: the daily struggle to stem CO2 emissions that takes place in front of supermarket shelves is at least equally relevant. Through our pur-chasing decisions we influence the attitudes of multinational enter-prises towards environmental protection. We should therefore heed Helmy Abouleish’s advice: „Copenhagen is only one stop along the road to limiting climate change. It has to be travelled by consumers and companies alike.“

From 7 until 13 December Helmy Abouleish, CEO of the SEKEM Group, was part of the official Egyptian delegation at the conference on climate change in Copenhagen, Denmark. At the event he specifically aimed his involvement at the support to agri-culture in the framework of a new global agreement that includes both the emissions of and the potentially negative risks for agriculture.

The role of agriculture in fighting climate change was discussed in Copenhagen both in the framework of the follow-up Kyoto protocol and by those negotiators who had not signed the first document. Even though agriculture has been on the agenda in 1997 in Kyoto there are still practically no mechanism aimed at financially support-ing the conversion to low-emission cultivation methods. However, the development of a comprehensive and at the same time simple incentive mechanism, says Helmy Abouleish, could on the grounds of the framework agreement of the Kyoto Protocol itself lead to quick successes.

Architecture

SEKEM Project Receives Prize

Climate Change

Helmy Abouleish in Copenhagen

Economy

Triodos Bank Opens German Branch

Helmy Abouleish in Copenhagen:More Attention to Agriculture

EditorialDear Readers,

Your Team of Editors

Agriculture and particularly meat production is producing excessive CO2

Exceeding the deliberations on the Kyoto-Plus-Protocol the delegates were also discussing so-called „sectoral approaches“ that emphasize the systemic importance of agriculture. Moreover it would be possible to add agricul-ture to the sector of “forest management”. However, both approaches would take time and additional research and development efforts that are not yet adequate.

Had Helmy Abouleish initially taken a positive position towards the upcoming deliberations on agriculture in Copenhagen before he left Egypt then he now draws a more sceptic conclusion. Still he noticed a more substantial inter-est in its role in combatting global warming. The importance of integrating indigenous populations in the dialogue as well as the stronger emphasis put on so far less attractive aspects such as the preservation of biodiversity however still have to receive more attention says Abouleish.

One reason for the many differences among negotiators is to be found in the drastically different economical and polit-ical dependencies from agriculture and its related indus-tries. While many countries of the South Americas focus on forestry others emphasize the protection and improvement of soils. „However, the discussants have to shoulder the responsibility together in the field of agriculture. Tree cut-ting has to stop immediately and stopping it has to be finan-cially rewarded. At the same time we need to have a clear future timeline” Abouleish remarks.

Moreover all partners have to ensure that aside from the emissions the social and ecological aspects are not neglected lest systems are strengthened that could again pose a threat to other sectors. Helmy Abouleish thus calls on all “organic sectors” : „There is a real threat of conven-

tional agricultural industries ‘hijacking’ the current devel-opment and, for instance, create huge mono-cultures that could again be harmful to the environment. The challenge of avoiding such a development through a comprehensive approach can only be tackled by enterprises, associations, and research institutions together.“

On 14 December the German GLS-Bank invited the subscrib-ers of their SEKEM-fund into their offices in Stuttgart.

About 30 of the almost 270 subscribers to the fund that have allowed the GLS-SEKEM-Fund to reach its planned size of 5 million Euro by purchasing shares of 5.000 up to 500.000 Euro came to the event.

Matthias Eisenhut of the GLS-Investment-AG was pleased to be able to announce that in spite of the challenging year 2008 the estimated return on investment of 6% in 2008 could be almost reached.

Subsequently Helmy Abouleish, CEO of the SEKEM Holding, familiarized the participants with the recent developments at the initiative including an overview of its history and the current societal and economic conditions in Egypt. He put special emphasis on the new SEKEM farms on the Sinai, in El-Minya (Middle Egypt) and in El-Wahat close to the Bahareya oasis to demonstrate to participants how SEKEM uses new funds to invest in the extension of the bio-dynamic agriculture in Egypt and an advancement of overall sustain-able development in the country.

The event was accompanied by music performed by a classic duet and additional informational activities by the German support association. All guests were also able to purchase a selection of SEKEM products. A typical Arabic lunch con-cluded the event.

Christoph Kampschulte

GLS-SEKEM-Fund: Information Event for Fonds Subscribers

More on the topic at:http://www.youtube.com/watch?v=sv-FPoDCLQg!

After Copenhagen, the real work to create a true common basis for the commitments of the individual countries to reduce their CO2-equivalent emissions and further actions has only just begun - also for the group of SEKEM compa-nies. The tables that should have contained the concrete emission targets of the individual countries are still empty in the final document of the Copenhagen Declaration. All of them now have until the end of January 2010 to individually name such figures. Plus, no financial commitments have been reached either.

Also for the SEKEM Group Helmy Abouleish guarantees that the next goal after Copenhagen will be to work with the existing network of global partners to positively influ-ence the impact the SEKEM and all its affiliates, friends, and partners can have.

Martin Haagen, Bijan Kafi

Economy

Source: Wiki Bildungsserver

The term „organic“ is not protected for clothes or other textiles in Europe. Hence it is usually required to look for other indicators to make sure one is purchasing a quality product. Many private labels vouch for the use of, for instance, organic cotton or other advanced standards in the production of such textiles.

SEKEM’s textiles are produced in accordance with the Global Organic Textile Standard (GOTS) and are certi-fied by the fairtrade-criteria of the FLO (Fairtrade Labelling Organization). The comprehensive requirements are being verified by an independent control body. However, SEKEM even exceeds the requirements in many ways. Aside from the guarantee to confirm to the minimum requirements of global standards the values of the SEKEM initiative are also reflected in its production methods.

Cultivation

Starting point for all SEKEM textiles is Egyptian cotton. It is being culti-vated by demeter-farmers in the Nile delta and in the Fayoum oasis and is renowned worldwide for its specific quality. Some Egyptian cotton varie-

Seven Steps Towards Cleaner Production at NaturetexClothing made from organic cotton is easy to find practically anywhere. Many customers rightfully ask if all bargains offer the same quality - and how much they have to do with bio-dynamic cotton from SEKEM.

Economy

ties boast especially long and tough fibres which allows the spinning of particularly thin yarns. The cotton fibres ripen inside capsules that are carefully picked by hand each autumn. The farmers also plant plenty of other crops such as onions, clover, herbs, or rice which are then purchased by the other firms of the SEKEM group. This allows for regular crop rotation on the fields and the long-term advancement of soil quality.

Ginning and Spinning

The cotton fibres are separated from the seeds in local factories. A little less than two thirds of its weight is made up by black seeds that are partially con-served for the next season and par-tially pressed to gain cotton oil. The cotton fibre is now spun into yarns in dedicated factories. It is an important task to ensure that the cotton from organic farms is not mixed with cotton from conventional growers. It is at this stage already that Naturetex indicates which yarns are needed and in what quantities to produce its various prod-ucts. Each lot is tested for quality in dedicated laboratories before it is fur-ther processed. The remains that are produced by combing the cotton are used by Naturetex as fillings for pup-pets or other children’s toys.

Knitting and Weaving

The yarn can now be used in produc-tion and is knitted into products or weaved into fabrics. This is again done in specialised factories that pos-sess the required oversized weaving and knitting machines for the various different sorts of fabrics. If any addi-tives have to be used in the process they also have to be bio-degradeable

to make sure that no water is contami-nated in the process. For instance it is required to size the yarn before weav-ing it in order to avoid it ripping apart inside the machine. This is achieved by using starch that is later washed out of the fabrics.

The finished balls of fabric are then checked for knitting errors, holes, or foreign fibres metre by metre at Naturetex. To achieve a flawless result backlit examination rigs are used to ensure that no glitch is overlooked. Additional aspects of product quality are subsequently checked for at the laboratories again to make sure the fabrics are not too light or too heavy and do not excessively shrink during washing.

Dyeing and Finishing

Most textiles are coloured. Either the fabrics are themselves dyed or the yarns are before the knitting starts. In accordance with the GOTS regula-tions Naturetex only uses a strictly limited number of dyes and auxiliaries

An open cotton capsule on SEKEM‘s fields Harvesting cotton on SEKEM‘s fields

that may not contain any harmful sub-stances such as heavy metals or other toxic elements. All chemicals used may neither be harmful to the workers at the dying plant nor the users of the textiles or the groundwater. Precise regulations prescribe the require-ments concerning the bio-degrade-ability of the individual substances

used. However, it is also important that the colours are preserved for a long time and do not dissolve either through washing or, for instance, the saliva of a child. They must also not be destroyed by direct sunlight. This is why synthetic colours still have to be used as natural colours cannot yet be used on an industrial scale or require such a high use of chemicals for fixa-tion that the environment is actually polluted much more through their use than through modern artificial colours.

Cutting, Sewing, Packing

The fabrics are cut and processed into complete garments at the Naturetex plant on the SEKEM farm. The design and preparation department initially produces the templates and has nego-tiated the precise specifications with Naturetex’ customers. According to the templates the fabrics are now cut by placing several stacks of fabrics on

top of each other and cutting them all at the same time with a special pair of scissors not dissimilar to a saw. The individual parts are now recombined into T-Shirts, bodies or pyjamas. Each seamstress or sewer may only exe-cute a single step of the workflow and then passes on the part to the next co-worker. Many side steps are required to produce buttons, apply accessories, or attach size labels. Furthermore, each seam has to be checked as have to be the sizes of each of the gar-ments. Eventually, all parts are ironed. A speciality of the production proc-ess at Naturetex is the exclusive use of natural materials in the manufac-turing of accessories. Buttons are pro-duced from parts of plants, ribbons and other applications from cotton - even the sewing yarn is 100% cotton thus requiring co-workers with a spe-cial ability to use the material that is more fragile than a synthetic product. Subsequently all products are pack-aged according to the wishes of the individual customer and the motto: as little as possible, as much as neces-sary. All packaging also has to be fully bio-degradeable, too.

Fair Trade and Development

Fair trade is not a buzzword but a com-prehensive concept of globally inte-grated economic activity forming the basis of all commercial activity at SEKEM. The cotton farmers receive a competitive price from SEKEM that does not only cover their production costs and thus ensures the survival of their families. It also allows them to invest into their long-term devel-opment. The network of cooperation among the demeter-farmers plays a vital role in this. As SEKEM does not only buy cotton but also creates mar-kets for the other products forming a part of the annual crop rotation addi-tional opportunities for income gener-ation are created for the farmers that result in greater independence from the fluctuating world market prices.

Naturetex as a firm in the organic tex-tiles business and part of the SEKEM group through its profits also sup-

ports the social and cultural insti-tutions of the SEKEM initiative and thereby creates chances for education and development for the people in the vicinity of the SEKEM farm and in the surrounding villages. Such opportuni-ties are also provided to the co-work-ers in the SEKEM firms in the form of, for instance, further education and courses in the arts during regular work hours. The SEKEM hospital also pro-vides for comprehensive medical care. A fund ensures the financial security of pensioners and the „Cooperative of SEKEM Employees“ allows for co-workers to participate in the shap-ing of the social conditions of work, the social culture inside the firms and their departments, and the expression of their influence on the management.

Use and Recycling

The careful production methods at Naturetex lead to textiles and clothes that are a pleasure to wear, do not pose health risks, and have an impact on the environment that is as small as possible. Principally they could even be recycled through composting.

Clothing made by Naturetex is more than the sum of its parts, the stand-ards that guide manufacturing, and the steps that lead to its production. Aside from its function as clothing and fashionable expression of individual-ity their purchase in the US or Europe is also directly helping the people pro-ducing it and thus serves as a contribu-tion to a more inclusive globalization.

Christina Boecker

Economy

Fabrics are turned into garments at SEKEM‘s Naturetex plant

Quality control of the final fabric

Triodos Bank Opens German Branch: „Entrepreneurs are Part of Society“

leaders have been charging ahead for years or even decades. The sus-tainable banks also show for the banking sector that a change of par-adigms is possible, reasonable, and desirable. For the Triodos Bank the goal is clear: maximize sustainabil-ity, not profit.

Many people in industrialised coun-tries would like to invest in develop-ing nations. You have created a green fund for SEKEM. How are these instru-ments received?

Two years ago in The Netherlands we experienced a huge demand from potential investors - the fun-draising even had to be cut short. Today we still feel the strong interest by investors in SEKEM - they under-stand that they are investing in their own future.

What was your core interest when making the decision to invest in SEKEM beyond the entrepreneurial challenge?

For us SEKEM is the perfect exam-ple of how to shape a leading enter-prise in a sustainable and thus truly holistic manner. Next to financial rentability SEKEM also pays atten-tion to environmental protection, individual advancement, and peo-ple’s culture. These are exactly the fields that are also relevant to the any engagement of the Triodos Bank anywhere.

„Social entrepreneurship“ is very pop-ular. Muhammad Yunus would even like to see „social businesses“ to solve the most urgent global prob-lems. But how much can social entre-preneurship really achieve?

Businesses that pursue a social goal while aiming to be profitable

are certainly part of the equation and one key to the solution to many pressing problems. Their effect will, however, depend largely on existing framework conditions specifically in developing countries. One must not overlook these: education and infra-structure, public health, good gov-ernance, the social and cultural role of women etc.

Your colleague, CEO of the GLS-Bank, and current laureate of the

„future award 2009“, Thomas Jorberg, recently said: „Those who do business, shape society.“

I fully agree with him. Entrepreneurs are a part of any society and they bear a great part of responsibility. I would even go beyond Mr. Jorberg’s assessment. I would like to stress that the economy can best contrib-ute to the positive development of society if the right framework condi-tions are in place. That means that its impact will be highest if politi-cians have the will to actively push the sustainability agenda. For us at Triodos Bank this is the only way to encourage economics to positively contribute to the development of society. Politics also have to create the necessary public support sys-tems such as a strong basic edu-cation system, ensure that further education is strengthened, and pro-fessionals in these sectors are ade-quately trained.

Dutch Triodos Bank N.V. on 2 December opened its German branch offices with the first Triodos-Bank-Dialogue event in Frankfurt am Main. After it had ini-tially expanded from The Netherlands to Belgium, Great Britain, and Spain at the beginning of the 90s the pioneer in sustainable banking now aims to enter one of the most important European markets. Bijan Kafi spoke with CEO Peter Blom on the occasion of the opening festivities.

Mr. Blom, sustainable economics generate a lot of controversy at the moment. On the one hand we seem not to have learned much from the finan-cial crisis. On the other hand issues like the basic income are on many political agendas. Are we witnessing a true paradigm change towards an

“enlightened capitalism”?

We currently see two tendencies in society and economics: some peo-ple, entrepreneurs, and decision makers are waiting, hoping that eve-rything will soon return to normal; others are working for a paradigm change because they feel that we simply cannot go on like this. Some

Culture

Visit SEKEM yourself: www.SEKEM-reisen.de www.demeter-reisen.de

On the occasion of the opening of the German branch of the Triodos Bank Bijan Kafi, editor at SEKEM Insight, spoke with chief operating officer of the Triodos Bank Peter Blom.

More on the 1. Triodos-Bank-Dialogue as well as video footage of the speeches are available at:http://blog.triodos.de

!

President of the Triodos Bank, Peter Blom, with Helmy Abouleish and Thomas Jorberg (GLS-Bank)

“archdiploma 2009” is the title of the biannual exhibition of the best diploma projects of students at the Technical University Vienna. The show that presented around 40 works last October is aimed at giving young architects and urban planners a chance to present their innovative works to the public and help them launch their professional careers. The event is also meant to advance public dia-logue on innovative solutions to today’s urban problems. This year’s “archdiploma 2009” was held at the Vienna Kunsthalle from 7 to 13 October 2009.

The event was held for the first time in 2000 and is being organised every two years for an audience that has increased substantially from 3.000 to much more than 6.000 visitors in 2007.

As the group of curators within the faculty of architec-ture of the TU changes in regular intervals the “archdi-ploma” always offers a unique portfolio of works. For the first time this year the event also included works from spatial and urban planners and not only archi-tects. Aside from classical architectural concepts the show also presented a range of research-based studies and theoretical works.

The show’s primary goal is to demonstrate winning alter-natives to monumental and monolithic forms of building and spatial design. Sustainable construction is another hot topic at the “archdiploma” as well as social compatibility of the projects. Thus it is no wonder that Niel Mazhar’s work „A residential building complex for the SEKEM farm in Egypt“ is among the winners.

Mazhar focuses on a residential building appropriate to the SEKEM ideal that also includes climatic considerations and the selection of the proper building materials. Thus aspects of monumental grandeur were not among the primary con-siderations. Instead Mazhar aimed at the appropriateness of the living and work conditions to the extreme climatic environment of the Egyptian desert.

„Many visits to Egypt familiar-ised me with difficult housing conditions in a country

that is made up to more than 96% of sand. Egypt’s arable land is quickly disappearing due to the extreme rise in pop-ulation. [...] This is the problem the SEKEM initiative focused at. [...] The core ideal of the initiative is to solve Egypt’s most pressing problems, the housing issue so far was not among them. [...] This is where my diploma project sets off“ says Mazhar.

This, too, is thus one of the many important functions of the prize and the exhibition: they allow the students to develop innovative solutions to pressing problems on their own and in compliance with social and ecological parameters.

Bijan Kafi with material from the Kunsthalle Vienna

SEKEM Architecture Project Receives Prestigious PrizeNiel Mazhar receives achdiploma-prize for residential architecture project at SEKEM

Culture

More information:http://bit.ly/5XvUkx (Handelsblatt Österreich)http://bit.ly/5jTyLf (Archdiploma)!

Dr. Ibrahim Abouleish from 17 to 18 September 2009 took part in this year’s “Magna-Charta-conference” at the University of Bologna in Italy. On the occasion of the event he signed the Magna Charta on behalf of the Heliopolis University the purpose of the charta being to serve as a founda-tional declaration of commitment of participating higher education insti-tutions to strengthen the role science and its institutions play in today’s societies worldwide.

The declaration emphasizes the cul-tural, scientific, and technological development that is primarily resting on the positive development of uni-versities. The institutions as centres of the advancement of culture, research, and the application of knowledge are to a great extent bearers and rep-resentatives of the “wisdom of the world”. Plus, it is their task to not only produce knowledge but also distrib-ute it and thus contribute to a healthy societal development. Their cultural, social, and economic future rests on the performance of universities and investments in the field. Moreover it is a part of the field of action of univer-sities to introduce future generations to the specific contexts of the human world and its natural environment and its relevance for the happiness of man-kind.

The undersigned rectors commit themselves and their institutions to the preservation and advancement of these and other principles in their work and in their collaboration on a global level.

SEKEM Insight reported on the “Clean Climate Project” for the first time in May of 2009. SEKEM’s new venture allows clients to offset their CO2 emis-sions caused by flights to any destina-tion worldwide. The project finances initiatives that lead to reductions of CO2 emissions elsewhere and have so far avoided more than 130 tons of greenhouse gases in Egypt thus con-tributing substantially to sustainable local development.

Specifically since the conference on climate change in Copenhagen the topic features prominently in the news. Public reporting ranges from doomsday scenarios to conspiracy theories. SEKEM would like to encour-age a constructive debate. A number of readers of SEKEM Insight has already contacted the project coordi-nators with questions, suggestions, and constructive criticism.

If you have any questions concern-ing the offsetting of CO2 emissions caused by flights, SEKEM’s multiple activities aimed at stemming climate change, or other environmental pro-tection in general, please contact the team at [email protected].

A new website will be launched shortly that will feature more in-depth information on the project, supported measures, and opportunities for par-ticipation by friends, partners, and cli-ents of SEKEM.

Ibrahim Abouleish Signs Magna Charta

“Clean-Climate-Project” Successfully Launched

Islam Seminar to be Held Again in 2010

combine commercial profitability with respect for the environment and a high level of social and ethical standards. Each year the initiative holds a regu-lar seminar on Islam that is aimed at European and international visitors wishing to learn more on the topic through a personal visit. Thus SEKEM also serves as a place for direct cul-tural encounters.

The seminar will feature workshops with Dr. Ibrahim Abouleish, artistic exercises (Arabic script, recitals of the Quran, Arabic songs, eurythmy) as well as a day trip to Cairo with an emphasis on the Islamic quarter of the city and specifically its historic mosques.

A supplemental programme is availa-ble that also allows visitors to experi-ence SEKEM close-up as well as take individual trips to the pyramids of Giza and the Egyptian museum in Cairo.

Applications and all inquiries should be directed at:

Hr. Dietmar Kreuer Tel : ++ 49 (0) 7556-931384

[email protected] www.SEKEM-reisen.de

2010’s new Islam seminar will be held under the motto „Impulses for Renewal of Islamic Societies“ in SEKEM from 29 March until 3. April.

The SEKEM-Initiative for sustainable economic, social, and cultural devel-opment in Egypt and several other countries of the Near and Middle East is renowned for its winning concept to

News

More information:http://www.SEKEM-reisen.de!

Imprint:

Publisher: SEKEM, EgyptThe editorial team of SEKEM Insight would like to thank all correspondents who have contributed to this edition.

Editors:Christina Boecker Bijan Kafi

Contact:SEKEM-Insightc/o Sekem HoldingP.O.Box 2834El Horreya, Heliopolis,Cairo, Egypt

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