Innovation

Mowilex’s innovation is their advancement in sustainability and environmental standards, succeeding through their comprehensive approach. The company is considered the benchmark in the country of sustainability. One example of how they integrated this approach into the business was through integrating carbon neutral operations with water based products as an alternative to petroleum based ones, used by most of the other companies. This innovation aligns directly with UN SDG 13 (Climate Action) by reducing their carbon footprint and UN SDG 12 (Responsible Consumption and Production) by prioritizing sustainable materials and processes.

The innovation emerged from the company's core values, since it was founded in 1970, there has always been a vision for environmental responsibility and ethics before it became widespread. Mr Safavi explained in the interview that company responded to a regional gap in sustainability practices by building a rigorous environmental program and adopting green technologies, continually expanding to meet the highest ethical standards.

Many people were involved in the creation of this innovation. Including Mr Safavi, the CEO, board members, and their sustainability team. They strived to achieve carbon neutrality, and implemented other initiatives. “A lot of the work I do deals with the ideation and setting the goals…the chief executive officer, the board, and the teams that go below…take these things and strategize on how to get there,” Francesco shared, highlighting the teamwork that powers Mowilex’s sustainability efforts.

Mowilex does relate to a sense of mission and a greater purpose. “We either do it or we don’t,” Mr Safavi explains, emphasizing Mowilex’s commitment to impactful, genuine sustainability. Their practices align not only with their business goals but with Indonesia’s broader environmental ambitions, inspiring other companies to follow in their path. "We want to lead by example and set benchmarks that others can adopt," Mr. Safavi emphasized.

Inspiration

The origin of Mowilex’s sustainability journey began with a core commitment from its founder to prioritize environmental stewardship, even before sustainability was mainstream. As Francesco Safavi describes, "Our founder prioritized it, even before it became a mainstream concept. Back then, there were no buzzwords around it, but our practices were always about doing right by the environment." This dedication laid the groundwork for Mowilex’s current status as a sustainability leader in Indonesia.

The primary motivation for this innovation stemmed from a desire to create genuinely impactful, sustainable practices within an industry that often overlooks authentic environmental action. Mowilex was motivated to move away from petroleum-based to water-based products, and it has since become the first certified carbon-neutral company in its sector in Indonesia, covering Scope 1, 2, and 3 emissions. This decision was driven by the need for "meaningful sustainability initiatives," as Francesco emphasized, stating, "We’re committed to genuinely impactful efforts rather than superficial ones because, in our industry, there’s fierce competition, and companies that pretend to be sustainable can’t maintain credibility."

Mowilex’s innovation goes beyond product design; it encompasses a holistic approach to the company’s operations, materials, and waste management, aiming to set "a high standard and create a long-term vision for sustainability." Francesco notes, "We’re constantly looking at the entire process—from what we produce to how it’s consumed, reused, and impacts the environment," which demonstrates the inspiration behind Mowilex’s forward-thinking, comprehensive sustainability strategy.

Ultimately, Mowilex’s vision is rooted in a long-standing company ethos of environmental responsibility, maintained by leadership committed to carrying this vision into the future.

Overall impact

Mowilex has won several awards, most notably Best Managed companies by Deloitte for three years in a row since 2022. This is not only due to their diversity and inclusion goals, within the company, but also a direct result of their efforts with sustainability. During the interview, Francesco Safavi explained that the company sets their own benchmarks in terms of what they want to achieve as a company and that their goal is to be an example for other companies and always stay ahead of the competition and government regulations by staying on top of the latest sustainability practices. According to Francesco, “sometimes, we must act before the government sets regulations because our ambition for environmental responsibility is higher than the existing policies.” In other words, while most companies measure the level of their commitment to environmental and sustainability goals against government regulations, Mowilex does not wait for the government to catch up with the latest sustainability trends and practices. As a result, they have been able to stay ahead of their competition while simultaneously having a positive impact on society. Some of the most profound achievements that the company has made include being carbon neutral and transitioning from “petroleum based products to water based products.” 

Moreover, by setting industry standards Mowilex has had a positive impact on the environment, business and society as a whole. This reflects a Net Positive Impact, as Mowilex not only reduces its environmental footprint but also inspires other companies and stakeholders to adopt sustainable practices. In addition, it is particularly inspiring that the company has had an environmental focus since their inception 50 years ago. Therefore, this further reinforces the fact that they have been a force for good in society for decades and continue to set an example for other companies today. Their efforts also demonstrate Quantum Leadership, as Mowilex integrates sustainability into every level of the organization, from inclusive hiring practices to advanced waste management technologies.

Business benefit

Mowilex's shift to sustainable innovations, like transitioning from petroleum-based to water-based products and achieving carbon neutrality, has strengthened its market position by appealing to consumers who value ethical practices. He noted that “being a sustainable, ethical leader lets us maintain a premium position.” These practices help the company command premium pricing. This approach also “aligns with Indonesia’s sustainable goals,” Francesco Safavi explained, attracting government recognition and helping Mowilex resonate with a younger generation passionate about environmental issues. 

Social and environmental benefit

Employment and Inclusion: Mr. Safavi mentions that nearly 50% of Mowilex's top management are women, emphasizing the company’s inclusive hiring practices and commitment to equal opportunity, rare in Indonesia.

Health and Safety Standards: The company’s adoption of California EPA standards for VOC emissions and lead removal aligns with public health benefits by reducing air pollutants, as described by Mr. Safavi.

Community Education and Recognition: Mr. Safavi notes Mowilex’s recognition by government bodies and upcoming CNN feature, indicating their impact on public awareness and education around sustainability.

Carbon Neutrality and Pollution Reduction: Mowilex’s achievement as Indonesia’s first carbon-neutral company in its sector reflects its environmental impact, especially with the shift to water-based products.

Waste Minimization and Green Technology: The investment in electric forklifts, efficient cooling systems, and zero-waste practices, as mentioned in the transcript, illustrates Mowilex’s dedication to reducing environmental impact through green technology.

Support for Indonesia’s Environmental Goals: Mr. Safavi explains how Mowilex’s practices align with Indonesia’s sustainability goals, underlining their national impact on environmental initiatives.

Interview

Francesco Reza Safavi, Chairman