Innovation

PHF could simply focus on running a successful business, but PHF decided to make sustainability concept as part of the business operations.

This is because PHF really wants make an impact, not for the sake of branding or Corporate Social Responsibility. PHF has been building a business model where sustainability is genuinely part of core business, not a side feature to make us look good. PHF's goal is to make sustainability and social consciousness part of lifestyle and reflected to all things that will be provided for their guests. PHF believes that PHF can make beautiful products and offer genuine services, and at the same time inspire others to make a real impact in protecting Mother Nature for our next generation.

And this is reflected on the PHF's vision, mission, and values as follow

Vision: To be the leading lifestyle hospitality brand in the world, recognised for making positive impacts wherever we go

Mission: To provide good times and do good in the world

• provide #GoodTimes through The ‘Good’ Philosophy:

1. Good, Genuine Service : based on family values
2. Good Food and Drinks : simple, comforting, delicious and sustainable
3. Good Ambience and Atmosphere : fun, soulful, accessible, and comfortable
4. Good Design : sustainable, comfortable, and dramatic Modern tropicalism
5. Good Cultural Programming : music, fashion and art.

• #DoGood through The ‘Good’ Philosophy:

1. Good Environment : sustainable operation (aim for zero waste)
2. Good Family Members and Culture : empowering, positive working environments, and family culture
3. Good Shareholders : commitment to financial return to our shareholders
4. Good Communities : develop skilled workforce and provide jobs.
5. Good Suppliers : work with responsible farmers, artisan producers and, other sustainable companies to create value chain relationship

PHF has an internal Sustainability Department for technical aspects and to set the tone and strategy but every department follows the same philosophy of zero waste, carbon neutral and protection of the environment. Thru their Sustainability Department, PHF

• identifies items that cannot be composted or turned into pig food and finds solutions in the R&D lab to ensure PHF is not contributing waste to the landfill
• tests new methods of processing waste by creating on-site labs, for example:

1. paper x concrete mix to construction brick
2. Styrofoam x concrete mix to construction brick
3. plastic x sand mix to paving/roof tile
4. Styrofoam x seashells mix to make wall tiles
5. Styrofoam x seashells x plastic mix to make the amenities for the creative center (waste bins, soap pump, tissue box, zero waste kit tray)
6. high density plastics processed into various shapes

PHF loves to keep challenging the new innovation that keeps them busy and always moving ahead to figure out solutions and to make things a bit better every day. For example, for the new Creative Centre, PHF wanted to have slippers, but there are always a challenge as they are made from numerous types of plastics which makes it hard to recycle, so PHF's Sustainism team together with Creative team have created Coconut Slippers for the guests.

Translating the sustainability concept into core business operations

(1) Zero waste philosophy

In addition to PHF's zero-waste seafood restaurant, Ijen, located inside the Beach Club, PHF also has an R&D lab inside Desa Potato Head called Sustainism Lab. This acts as an educational space where PHF can teach others what PHF has learned about the “zero-waste philosophy” as well as space where PHF can research and develop new ways to manage and recycle waste materials. One of PHF's objectives now is to show others that a company doesn’t need to sacrifice the guest experience or their own success to be sustainable, and to show others how this can be achieved.

(2) Climate Neutral

Potato Head Beach Club and The Katamama Hotel has become the first hospitality company in Indonesia to take the UN's Climate Neutral Now pledge, to measure greenhouse gas emissions, reduce where possible and offset the rest. PHF will continue to reduce the emissions. Ensuring PHF is not contributing to the potentially catastrophic effects of Climate Change is very important to PHF.

(3) Renewable Energy

PHF has established renewable energy targets for all new and existing properties, which includes use of efficient lighting and electric appliances and the generation of its own potable water. PHF is designing solar PV/photovoltaics which can fulfill 10% of energy supply for Desa Potato Head, as well as for the Tabanan Project.

(4) Events and Installations using organic & upcycled materials

• Sustainism Kids: Kids Club focused on interactive sensory play programmed around art/design meets sustainability which will be housed inside an evolving art installation made from bamboo (organic material) and flipflops (synethic/repurposed material – waste has value) obtained from beach clean-ups
• The plastic (bamboo looking) installation in the creative center
• Bouquet of Love (2017) by Indonesian artist Eko Nugroho uses common household waste to build a tactile mural on the facade of the Beach Club. Nugroho sourced the waste from landfills on the island of Java.
• 5,000 Lost Soles (2018) by German art activist Liina Klauss demonstrates the reality of marine pollution through an installation of flip-flops collected along the shores of Bali. The 5,000 sandals were collected by Klauss and her small team in just six beach clean-ups.

(5) Change-maker Scholarship Program

PHF supports Green School’s Change-maker program which sponsors young Balinese students to attend the Green School for the entire period of their primary and secondary education.

(6) Empower artisan in Bali and around Indonesia

PHF empowers Indonesian artisan to create artistic products which reflecting Indonesian culture, and at the same time PHF supports their business and economic growth simply by choosing them as the main partners of PHF, instead of partnering with big/giant Corporations or factories.

Inspiration

PHF's mission is to invite and enable people to have an amazing time every day, and leave the world better, which is what this generation is after. PHF does this through immersive experiences spanning music events, cultural excursions and sustainability workshops, as well as by being transparent about where the food comes from and where the waste goes. For PHF, life is a balance. This generation is more mindful than ever, but they also want to have fun and meet new people from around the world, so PHF hopes to be the facilitators that allow them to connect while leaving as little environmental impact on the world as possible.

"Desmond Tutu once said: Do your little bit of good where you are; it is those little bits of good put together that overwhelm the world. So, even though we are a small company compared to global giants, as a lifestyle hospitality company we interact with around 10,000 people every day, among our guests, colleagues, partners and stakeholders. So we started asking ourselves: What if we are able to evolve hospitality not only as service industry but as a catalyst for a greater change? We can play a great role of being the mediator, curating solutions in ways that are more relevant and inspiring to our guests," said Maria.

PHF believes that hospitality can be a very powerful tool to inspire society by showing to the guests that PHF can do their part to protect what PHF has whilst still delivering memorable experiences through genuine hospitality.

Overall impact

The biggest impact of this innovation is that PHF can produce the products to be offered/sold to the customers. Therefore, it's not just about doing good deeds for our planet/environment and people/community, but also creating a positive impact for PHF's business itself.

Katamama Suites Hotel: Building Construction & Interior

• Building's entrance - the majority of surfaces comprise the multi-tonal Balinese bricks, interjected with some teak wood
• Overall building was built from 1.8 million hand-made bricks by the Balinese. These bricks traditionally only used in temples around Bali
  
• Terrazzo for floors and wall treatments are made locally as well. And PHF only uses cement terrazzo, which is a more natural material compared to resin terrazzo.
• Jenki style furniture is made by local manufacturer in Surabaya. The timber was Indonesian grade-A teak, sourced from certified forests.
• Gaya ceramics are made by Gaya, located in Ubud, Bali. Gaya is one of Bali's best ceramic workshop by using Japanese Raku technique.
• Natural dyed textiles are hand-woven by the women of Blabatuh village, Gianyar, Bali.
• Wooden boxes are made by local artisan in Tukad Balian, Denpasar, Bali

Katamama Suites Hotel: The Zero Waste Kit

• RPET Tote Bag : Each bag is made out of 35 recycled plastic from water bottles
• Cutlery and Straws: Each piece of cutlery is handmade and coated with a food-grade sealant so it is safe for consumption and reusable after wash. Made in Indonesia.
• Cutlery and Straws Pouch: 100% cotton, handmade and naturally dyed in Bali. Made in Indonesia.
• Ointment Pots: Constructed from aluminium and bamboo
• Lunchbox: Constructed from aluminium and bamboo
• Water Bottle: Made of aluminium and bamboo
• Tray: Made from waste materials in Bali by Sustainism Lab

Katamama Suites Hotel: Refillable Amenities

• Shampoo, Conditioner, Soap, Sunscreen : Made in Bali by Sensatia Botanical.
• Insect Repellent, After-Sun Care: Made in Bali by Republic of Soap.

Merchandise

• Signature Shirts - All Potato Head signature shirts are made from Tencel™ fabric, use coconut-shell buttons and are responsibly produced in Indonesia. Tencel™ is a natural material made from the pulp of fast-growing Eucalyptus trees. The fibre is fully biodegradable and anti-bacterial, uses 80% less water than cotton and is harvested without the use of pesticides or insecticides. All pieces are designed to minimise their impact on the planet and feature prints inspired by Desa Potato Head’s island home, Bali.
• T-Shirts - All Potato Head T-shirts are made from organic cotton and produced in Indonesia.

Food & drinks

• Conscious Cocktails - Conscious Cocktails Bar program is concerned with the supply chain of the ingredients that PHF uses and how PHF disposes them. Fruit is sourced seasonally and then PHF uses culinary techniques like curing and natural fermentation to maximise parts of the ingredient that would otherwise go unused. PHF uses locally produced, untreated coconut sugar and raw Balinese honey in the drinks to achieve the balance of flavour. Traditional citrus acids are eschewed for alternative brewed acids, like locally produced raw cider vinegars and plant acids like rosella, and use the husks and leftover pulp from juicing to make in-house liqueurs and syrups.
• Drink Water - Partnered with BioSystems to retrieve water from the ocean instead of the island’s natural reserve. Through the process of reverse osmosis, salt water is made safe to drink and used across the entire Desa Potato Head.

Not just for the benefit of PHF's business, those initiatives definitely give positive impacts for our planet/environment as well as people/community

Sustainability are at the heart of Potato Head business: (1) Environmental concerns

Many companies are concerned that these are all too idealistic, that it will be too expensive to implement, that it will be too difficult to make it operationally feasible, it will hit the bottom line, but for PHF, if they don't do this, the consequences will be much more expensive, i.e destruction of our earth, growing sickness from consuming bad contaminated produces, industrialization taking over traditional craftsmanship or industries.

"This is our ninth year and we face much more competition. But our financial numbers are at their best, we retain and continue to acquire new markets, our customers have never been more engaged, our team’s satisfaction has never been better and it is obvious that we started seeing these positive results as we started shifting the direction." said Maria.

Ijen

A leading example of PHF ongoing commitment to protect the planet while proving environmentalism and modern design do not need to be mutually exclusive. Produce is from Bali Fresh Farm Cooperative with line-caught fish from Bali Sustainable Seafood and rice from the UNESCO-protected Jatiluwih terraces. Food scraps are meticulously separated into organic and inorganic waste that go into five different bins; what can be fed to pigs is sent to local farms, shellfish shucks are used as a design material at Sustainism Lab or powdered and used in animal feed or fertilizer, and all dry goods are entirely recycled by the island’s responsible waste management service, ecoBali.

Cooking Oil

PHF works with Yayasan Lengis Hijau to process the used cooking oil and biofuel is purchased back in the form of candles or donated to Green School’s Bio Bus Programme, which uses the fossil-fuel alternative to transport children to and from school.

Sustainability are at the heart of Potato Head business: (2) Empowering local communities

PHF acts as a platform for suppliers to grow their businesses. Working with responsible farmers, artisan producers and other sustainable companies, PHF invites them to be part of family and create a value chain relationship. By doing this, PHF empowers Indonesian artisan to create artistic products which reflecting Indonesian culture, and at the same time PHF supports their business and economic growth, as well as economic of Bali.

Business benefit

As these sustainable initiatives are implemented as part of PHF's core business, the direct benefit for the business are

• self-produced the products to be sold/offered to the customers, i.e tables, amenity bottles, etc
• create a value chain relationship be working with responsible farmers, artisan producers and, other sustainable companies
• support from local artisans, which at the end, will definitely support PHF's value proposition which is offering luxurious artsy and cultural experience for the customers
• create positive working environments for employees, suppliers, and management
• support from local government who has the same vision on how to protect the Bali's environment

Accolades and Certifications

1. Most Sustainable Bar

Potato Head Beach Club was awarded the Most Sustainable Bar award by Asia’s 50 Best Bars 2018.

2. United Nations Climate Neutral Now

Katamama and the Beach Club are certified as climate neutral, as declared by the United Nations’ Climate Neutral Now initiative. This means Potato Head has measured, reduced, and compensated for any greenhouse gas emissions while establishing industry benchmarks for eliminating waste and promoting recycling in Indonesia.

Customers reaction

We believe that our approach to sustainability has led us to a far better experience for the consumer. We do not want to be the people that deliver a sub-standard sustainable answer. We know we can make the best products for our customers and not sacrifice the guest experience.

Sustainable can be beautiful, sustainable can be exceptional.

"What motivates us is the cost of not doing it. I.e. we wouldn’t be in business if we don’t take these steps. What we’ve found is that we can and are running a financially viable model with the solutions we’ve come up with around the zero waste philosophy and financially, we actually found some really great ways to actually save money," said Maria.

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Social and environmental benefit

Benefits for society

• support the business and economy of local artisans who work with PHF by empowering Indonesian artisan to create artistic products which reflecting Indonesian culture, and at the same time PHF supports their business and economic growth simply by choosing them as the main partners of PHF, instead of partnering with big/giant Corporations or factories
• empower the sustainability concept thru education sector by supporting Green School (change-maker scholarship program)
• as part of "activist" to build the sustainable cities and communities, i.e by doing these kind of initiatives, PHF helps to protect the beauty and cleanliness of Bali in the short as well as long run

Benefits for environment

• protect our planet/environment from climate issues, trash, etc
• reduce the consumption of non-renewable energy by installing solar PV to be used in PHF's business operation

PHF has been awarded as the first Indonesian hospitality company to be independently verified as carbon neutral (https://unfccc.int/news/potato-head-family-becomes-the-first-hospitality-company-in-indonesia-to-take-climate-neutral-now)

"We’ve taken steps to reduce our carbon emissions each year through the UN Program, Climate Neutral Now and we’ll continue to reduce our emissions. Ensuring we’re not contributing to the potentially catastrophic effects of Climate Change is very important to us. We make and bottle our own water for our guests here at Desa Potato Head, which reduces our carbon profile and doesn’t draw water from the same source as our local community. We have programs in all areas of Energy, Water and Waste that we’ve developed over the years and we will keep improving upon," said Maria.

Interviews

Ronald Akili, Founder & CEO (Chief Executive Officer)

Simon Pestridge, CMO (Chief Marketing Officer)

Maria Garcia del Cerro, Communication Director

Dewa Legawa, Eco Champion (PIC Sustainism Lab)

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