Five Insights from the C-Suite: How En-ROADS Changed The Way One Business Leader Thinks

Taking the En-ROADS climate solutions simulator outside of his classroom, Dr. Florian Kapmeier helped the CDO of TRUMPF SE + Co. KG gain new insights to apply to the company’s sustainability strategy.
 

When MIT Sloan Research Affiliate and member of the MIT Climate Pathways Project team Florian Kapmeier got invited to run an En-ROADS workshop geared towards climate solutions in banking and finance, he didn’t hesitate for a second. Kapmeier knows that interactive simulations using the climate solutions simulator have been shown to increase participants’ understanding of climate change, their sense of urgency about the issue, and their desire to learn and do more about it. He was certain this audience would be an important one to engage.

“After running the workshop, I remember thinking at the time that it was one of the best I had ever facilitated,” Kapmeier said. “Participants were highly engaged and interested.”

Two of those participants were the CEO and CDO of TRUMPF SE + Co. KG—one of the world’s largest suppliers of machine tools and a leader in laser technology. Not long after the workshop took place, Dr. Mathias Kammüller, Managing Partner and CDO of TRUMPF SE + Co KG reached out to Kapmeier directly about scheduling another session. Kammüller said that he had already begun circulating the tool, freely available online, to colleagues and family members (TRUMPF is a family-owned company), and he still had questions he hoped Kapmeier could answer using the simulator.

A Deeper Dive and a Wider Net

A one-on-one follow-up session was soon scheduled, and after covering topics ranging from time delays in nuclear energy development, economy-wide impacts of carbon pricing, and infrastructure needs for electrified transport, Kammüller decided that his entire management board needed to experience En-ROADS.  He also provided a formal endorsement of the tool, joining the (now over 70) leaders who have done the same. Of it, Kammüller said:

Dr. Mathias Kammüller | Managing Partner and CDO, TRUMPF SE + Co KG

I am excited by the possibilities of En-ROADS. It impressively illustrates that some climate solutions are overestimated and others are underestimated in the public discourse. En-ROADS has helped us to understand that we at TRUMPF—and the entire machine industry—need to quickly and ambitiously drive the transformation from fossil-based to renewable energy in all dimensions.

Kapmeier ultimately ran two additional workshops for the rest of the TRUMPF management board as well as for the first and second-level managers of the company. He was reminded of how using En-ROADS alongside others in a group setting can really enrich the experience, as participants often challenge each other’s “mental models” about the impacts of various policy decisions. For example, following the interactive group workshop, TRUMPF eventually shifted their thinking about investments in nuclear fusion. 

“It takes too much time,” said Kammüller, but he also acknowledged that generations from now, people may need new ways of creating energy. “We are still in contact with companies who want to develop this laser-initiated nuclear fusion, but we think this will come in 15 years [at] the earliest.” 

Kammüller, who also serves as Chairman of the Mechanical Engineering Industry Association (VDMA), spread the word about the En-ROADS model among members there, too. “People tried to find something wrong with it!” he said, laughing. He remarked on how helpful it was to have a model backed by MIT, that uses the best available science, when trying to create change. En-ROADS is updated regularly and is fully documented online. The model’s structure and all of its equations, parameters, and assumptions are available for users to explore. Users can even challenge and change many assumptions, further encouraging them to explore different scenarios. 

Five Key Insights 

Recalling his multiple experiences with the En-ROADS simulation, Kammüller recently shared the top insights he gained from them:

1. Pricing carbon is high leverage: “A high price gives the highest change. If you have a price change then the market will react and will change accordingly.” He noted that governments might try to avoid carbon pricing, but En-ROADS shows how powerful it is.
2. Electric transport requires sufficient infrastructure: “It doesn't change the market situation if the [charging infrastructure] for e-mobility is not sufficient. That is what we see in Germany right now.” He said many government decisions have focused solely on electric vehicles, but not on things like ensuring those in multi-family units can plug-in.
3. Nuclear energy comes with a long delay: “I thought this could be a game changer, to support more nuclear energy, and that was something [surprising] in the En-ROADS simulation–it doesn’t change a lot, to bring on more nuclear plants.” He said En-ROADS showed him long commission and building times that lead to delayed impact.
4. There’s no silver bullet for the climate: “Everything is necessary. You shouldn’t just change one [policy], you should change a lot.”
5. There’s no time to waste for the climate: “It’s most important to change as fast as possible--not to support things that are only valid in 10 years.”

The last insight rang particularly true when it came to exploring energy efficiency measures in building and industry: “For power consumption in our machines, this is high leverage, because we have 40,000 in the market. The energy efficiency lever was one of the three levers with the highest impact. This alone wasn’t a revelation, but En-ROADS made it clear we had to change as fast as possible.” 

Kammüller also pointed out that while En-ROADS is a global model, it’s still very useful in helping TRUMPF think about its sustainability strategy. “The biggest argument in Germany is that we are only responsible for 2% of the emissions. But we have many companies with high exports and high impact on the entire world–our machines, cars, and the many products we are supplying. We always have to think about this.” 

As far TRUMPFs sustainability strategy, En-ROADS has been influential.

“We have a good common understanding through En-ROADS about what we have to do. Our sustainability strategy was influenced by this. It was clear for us what we have to do and where we need to find improvements in emissions reductions. Everyone needs to see this!”

You don’t have to take Dr. Kammüller’s word for any of this though. You can try En-ROADS for yourself; however, to get the most out of your experience, we recommend engaging with one of our trained facilitators first. Learn more about the MIT Climate Pathways Project and how to engage with us on our website, by submitting an inquiry, or by dropping us a line at climatepathways@mit.edu.