In an interview with Moneycab, André Nauer, CEO of ISS Switzerland, explains the company’s priorities for the new year in the areas of innovation, sustainability and AI, and the benefits of diversity.
André Nauer of ISS Switzerland increased revenue by 9 percent last year to 832 million Swiss francs. What drove this strong growth?
The past year was challenging for us at ISS Switzerland, but at the same time extremely successful. The increase in revenue is a clear sign of our strength and adaptability in a dynamic market. Our success is built on a solid foundation of quality and customer focus. ISS has distinguished itself through very strong customer loyalty, as we experienced virtually no customer losses and were able to successfully renew nearly all expiring contracts. Through close collaboration with our customers, we were able to develop customized solutions tailored precisely to their needs. The growth surge was driven, on the one hand, by the strategic acquisition of Livit FM Services AG in November 2022 and, on the other hand, by significant new customer acquisitions.
How is revenue distributed across the individual customer segments?
In 2023, we observed a significant shift in revenue distribution across customer segments, with the real estate sector emerging as the second-largest segment. The office sector remains the leader with a 33% share of revenue, followed by real estate with 12%. In 2023, ISS gained market share in all strategic segments and grew in the following areas: pharmaceuticals, food, industry and manufacturing, transportation and infrastructure, healthcare, and the public sector.
Your strategy now identifies real estate investors as a key core segment. What growth potential do you see here?
Real estate investors are increasingly faced with the challenge of managing their properties sustainably and efficiently to increase the value of their investments. We see enormous potential for growth here. Through our comprehensive facility services - ranging from technical maintenance to energy optimization - we offer investors not only the opportunity to improve the operation of their properties but also to increase their attractiveness and market value. With our new “Portfolio 360” solution, we offer real estate investors a new, holistic approach to optimizing their real estate portfolios. This innovative product aims to boost performance in key areas such as data management, risk management, sustainability, and operational optimization across entire real estate portfolios.
“Portfolio 360” aims to enhance performance in key areas such as data management, risk management, sustainability, and operational optimization across real estate portfolios.”
ISS Switzerland employs people from over 130 countries. What initiatives is your company pursuing with regard to diversity, inclusion, and belonging?
As CEO of ISS Switzerland, I am particularly proud of the cultural diversity and inclusion that define our company. Our goal is to be a “Company of Belonging” - a company where every person feels welcome and valued, regardless of their background, age, or gender. A key element of our strategy is promoting internal training and professional development for our employees. In 2023, we filled a significant proportion of our management positions - namely 60 percent - internally. This practice has not only highlighted the development opportunities within our company but has also led to an increase in the proportion of female executives to 35 percent (as of January 2024).
In addition, the hiring of 266 refugees demonstrates our commitment to social integration. We focus on long-term initiatives in the areas of diversity, inclusion, and belonging, and foster a culture of appreciation and recognition, as evidenced by the recognition of 34 top teams and 164 employees for outstanding performance last year. We also collaborate with nonprofit organizations to support people with disabilities and integrate them into the workforce.
How great is the innovation potential that this diversity offers the company?
It’s enormous. Diversity brings so many different perspectives, opinions, and experiences to our company. And it is precisely this diversity that takes us from good to even better. Our motto at ISS is: What’s good today must be even better tomorrow. This can only be achieved if everyone truly pulls together and works collaboratively on the quality of our services, innovative solutions, and continuous improvements. This collective effort and collaboration, fueled by our diversity, make us stronger and enable us to achieve truly outstanding results. To realize the innovation potential of the future, we must also invest in new job roles and integrate new skills. Data science analysts, AI specialists, sustainability experts, and other roles are examples of fields that are gaining importance in facility management.
Environmental sustainability is also of great importance in facility management. Where does ISS Switzerland place its specific priorities?
We are focusing on decarbonization as a central element of our strategy. The validation of our emissions targets by the Science Based Targets Initiative (SBTi) reaffirms our commitment to acting in accordance with the latest scientific findings and the principles of the Paris Agreement. In the area of energy efficiency, we are committed to using renewable energy and optimizing energy consumption to substantially reduce our carbon footprint. Converting our vehicle fleet to electric vehicles and implementing efficient route planning are further steps toward reducing our emissions. We prioritize products that are as plastic-free as possible and also require our suppliers to provide the best possible sustainability solutions.
How do you support your customers with sustainability solutions?
Our goal is not only to operate sustainably internally but also to actively support our customers in their sustainability efforts. Through our energy efficiency consulting services, we enable our customers to make their workplaces more sustainable while minimizing energy consumption. With our new standard for supply chains and procurement, we promote sustainable practices among our suppliers, which helps our customers achieve their environmental goals. Our initiatives to decarbonize vehicle fleets and buildings help our customers significantly reduce their CO2 emissions. Additionally, our promotion of biodiversity through nature-based maintenance of our green spaces reflects our commitment to preserving and enriching habitats.
“We are currently implementing our first pilot projects to see how we can use AI to streamline our administrative processes and make them more efficient.”
Digitalization can play a major role, particularly in energy optimization. In which key areas is ISS Switzerland leveraging state-of-the-art technology?
In energy optimization, we view digital technologies as the key to more efficient and sustainable operational processes. By using digital and sensor-based solutions to measure, analyze, and optimize energy consumption, entire building portfolios can be optimized comprehensively and continuously. These technologies enable us to significantly reduce our clients’ resource consumption and lower operating costs.
Does artificial intelligence already play an important role?
Artificial Intelligence offers great potential for us in the future. We are currently implementing our first pilot projects to see how AI can help us streamline our administrative processes and make them more efficient. We see enormous opportunities, particularly in the operation and maintenance of our facilities, in optimizing our route planning, in interacting with our customers, and in planning our staffing. These initiatives are a first step toward learning and understanding how AI can help us improve - for our customers and our team. As a national subsidiary of the ISS Group, we also benefit from the global ISS network and the products developed at our tech hubs in Porto and Warsaw.
You can find the original interview on Moneycab from March 13, 2024