Hexagon’s R-evolution puts data to work to save the planet

Erik Josefsson speaks with an energy and enthusiasm fitting for someone in his role. He’s the CEO of R-evolution, a business venture within the Swedish industrial tech group Hexagon, with the mission of speeding up the world’s transition to a sustainable economy. 

Hexagon is one of the highest-valued tech companies in Sweden, a global leader in sensor, software and autonomous solutions. The company launched R-evolution in 2021 to grow and accelerate green-tech business opportunities. Josefsson talked to us about how the company is doing that.

Could you describe the origin of Hexagon R-evolution? Where did the idea come from? How did you get involved?

Erik Josefsson (EJ): I was previously responsible for 5G solutions for industries at Ericsson, enabling wireless connectivity in factories and industrial spaces. In every factory, I saw a Hexagon sensor for quality inspection and started to think, we need to connect these wirelessly. I got the opportunity to meet up with Ola Rollén, Hexagon’s CEO at the time. We decided to move forward with a technology partnership between Hexagon and Ericsson. Then in the fall of 2020, Ola called and said: Let’s do something bigger than eliminating cables; let’s save the planet. We created a company within Hexagon to take on projects where we could make a big environmental impact and drive profitability. We called it R-evolution.

Who from Hexagon is involved in R-evolution? Who do you report to?

EJ: Hexagon’s main purpose is to take data and transform it to digital reality. That’s the foundation for any type of decision-making and improvement. That’s already in our existing segments. But now we have a new rising segment that we call “green tech” that we need to accelerate. I report to our group CEO. I’m like the thumb on the company’s hand. We have around 25,000 employees in Hexagon, and as soon as we find an opportunity – a big environmental impact where we can see a new business model – the thumb and the other fingers connect to make it happen. It’s a pure business venture acting with the speed of a startup and the muscle of a big multinational.

Practically speaking, how do you make the decision to get involved in a specific project? Where do you start?

EJ: We follow a very simple mantra: Do and document. There’s not a strict process in place. It’s the speed of execution and entrepreneurship that drives us forward. As soon as someone in our wider organisation sees a business opportunity, they connect with us. 

Sometimes we go in and close a deal or even acquire assets. For example, we went down to Spain and acquired our first solar park and then built a second one. Using our visualisation platforms and sensors, we created a digital layer on top to help optimise and control that solar park. We contribute to the group by selling electricity, but our aim is not to be a utility. It’s about creating those lighthouse projects, developing the technology and recipe that others can then use to make their solar parks more efficient. In that case, Google approached us to combine our technology with their data storage engine. That partnership helps scale additional use cases, such as energy forecasting or anomaly detection.

We’ve now built up a strong energy leg. We’ve created similar digital threads for wind and green hydrogen. We also recently launched an initiative to enable sustainable desalination for greater access to clean water.

Could you give some other examples of projects you believe in and feel strongly about?

EJ: One of the most important assets we have on this planet is nature itself, and it’s under threat. So in addition to our energy leg, we’ve also been working on building our “natural capital” leg. That is where we help attribute value to nature by providing accurate measurement and visualisation. 

The first project we stumbled on in this area was in the Bahamas. Our sales people were getting requests from a research group for a specialised Hexagon aircraft sensor to map the sprawling underwater seagrass meadows. We decided to join forces to map the seabed habitat, placing sensors on tiger sharks, and using satellite technology, marine vessel surveys, scuba divers as well as Hexagon’s airborne sensor technology. Our scientist partners did core sampling and found that the seagrass roots absorb 10-15 times more carbon than their terrestrial counterparts. 

Based on our research, the Bahamian Government is preparing to issue blue carbon credits, which are the first of their kind, with R-evolution as the supplier of multi-dimensional mapping of the seabed. That’s something we continue to work on, also bringing it to other countries.

That’s a fascinating project, even enlisting sharks to gather data. Do you see applications in the natural capital space on land as well?

EJ: After the work sub-ocean, we thought, why can’t our technology also change the game for the biodiversity hotspots above water. We have partnered with the University of Vienna to develop a novel approach to measuring tropical rainforest, starting with La Gamba in Costa Rica. Using our precision sensors and AI-enabled software, we’re modelling and monitoring the ecosystem’s biodiversity with three-centimetre accuracy.

In February of this year, we launched Green Cubes, cubic metres of rainforest that we measure and that corporations can then sponsor to conserve biodiversity. The revenue generated by Green Cubes goes back to the local landowners, who are then incentivised to conserve their existing land instead of selling it for palm oil production, cattle farming or lumbering, which risks deforestation. As a sponsor, you can go into that full 3D model and see the exact position you have.

Do you see other commercial uses for Green Cubes and biodiversity mapping outside of the sponsorship model?

EJ: The story has evolved. After launching Green Cubes, our colleagues in Hexagon’s Mining division called to say they needed this for another purpose. Companies are facing new regulations around biodiversity. Mining companies also need to show as part of the reclamation process how the land has been restored. Just a few weeks ago, we launched Green Cubes Digital Reality, which provides a 3D digital twin that companies can use for environmental monitoring, in reclamation and complying with regulations.

On that note of commercialisation, what role does profitability play in the projects you choose to pursue?

EJ: We don’t touch anything where we don’t see profitability. Every example I’ve mentioned here has a profitable business case. In the Bahamas case, we go in as a service solution and then activate it as a subscription. Or we innovate in the whole value chain with a new market offering, for example with Green Cubes. That’s the beauty of being in R-evolution where we can create these exciting new business ventures. With the power of data visualisation, we bring transparency and trust to areas that didn’t have them before. We think that can open up new markets. Saving the planet is the biggest business opportunity of the 21st century.