January 30, 2006

Clean, Clever and Competitive

Early November 2005, Pieter van Geel, the Dutch State Secretary for Housing, Spatial Planning and the Environment invited me to facilitate a group of "eminent" representatives from business and NGOs to produce an Advice to the European Heads of State on how to make Europe more competitive with its core competencies on energy and resources efficiency.See the CCC site.

I accepted enthusiastically. I believe since long that eco-efficiency and eco-innovation are fundamental strategies for success and that their time will come. This project was about getting faster to that time.

This is not the first of such excercises. However I think that it went a step further. We have a new basis for discussion between business and NGOs about fiscal incentives and market distortions in favour of eco-efficiency, a taboo in neoliberal economics. This was worth the exercise.

But while the advice is sound and bold it will require listening and courage in the political sphere to take it up. Please study it and pass it on. We need movement!   

January 03, 2006

La consommation durable

Comment consommer d'une façon qui nous apporte qualité de vie sans détruire celle des autres et des générations futures - c'est une question qui continue de préoccuper une minorité avec peu de résultats. C'est pourtant un enjeu fondamental. J'ai eu l'occasion d'animer un travail de spécialistes francophones dans le courant de l'année passée. Sans apporter de solutions révolutionnaires ce travail a permis de faire un état des lieux de questions qui sont surtout débattues dans la sphère anglophone. Il est présenté dans une édition spéciale de Liaison Énergie Francophone.

Il apparaît clairement qu’en presque vingt ans de d’analyses et de débats il n’y a plus rien à dire de nouveau. Il suffirait de passer à l’action. Les pistes ne manquent pas, c’est plutôt le courage et la générosité qui ont jusqu’ici fait défaut.

December 22, 2005

Innovation - ne ratez pas le deuxième acte!

Le jeu de l’innovation et de la compétitivité se joue en deux actes. Le premier est l’invention d’une solution d’un problème ou d’un besoin. Le second est la mise en œuvre de cette solution d’une façon originale, difficile à imiter. C’est le second acte qui juge de la valeur de cette innovation et qui crée le retour sur investissement.

J’ai été invité cette semaine à ouvrir les débats sur l’innovation et le développement durable du Forum des entreprises et du développement durable organisé par le Ministère de l’Environnement et du Développement Durable en prolongement de ses états généraux du mois de juin. J’étais heureux de le faire car au fond je n’ai jamais été un bon prophète dans mon pays. Je me suis donc appliqué à proposer mon approche  « utilitaire » de l’éco-innovation. Il y avait là également quelques entrepreneurs qui ont souligné eux aussi l’importance du marché et leur préférence pour des mécanismes de soutien à la prise de marché plutôt que des instruments de soutien à la recherche et au développement.

Si importante soit elle, une subvention au développement sera vaine si le marché boude l’innovation et ne permet pas un retour rapide sur investissement. Il faut bien constater que la majorité des instruments d’incitation de l’innovation mis en place par les pouvoirs publics sont des instruments de développement de l’offre. Les nouveaux pôles de compétitivité ne font pas exception. L’invention et le développement semblent constituer la phase héroïque et intelligente de l’innovation dans l’imaginaire des pouvoirs publics et des nombreux universitaires qui viennent au secours de ces pôles en formation. Le marché, sa demande, le profit et le retour sur investissement sont des réalités qui peut-être les embarrassent. Ou leur semblent-elles se réaliser spontanément grâce au pouvoir d’un brevet ?

Ne rêvez pas.

November 13, 2005

The JCI Vienna treaty on CSR

A few weeks ago I could contribute to one of the more energetic events I have been invited to - the 60th world congress of the Junior Chamber International, a global network of young (less than 40 years) entrpreneurs. As a signpost of awareness and commitment the JCI signed a formal "treaty" or set of social responsibility principles. They also had me as a keynote for a high altitude briefing of what CSR is all about. I could not help sharing my impatience that so little actually happens  beyond words and declarations . Voluntary initiatives are fine as long as the troops of volunteers and their momentum outpace the problems we face. But this is hardly the case. 

September 05, 2005

Katrina - the ugly face of climate change

Hurricane Katrina overshadowed two other recent weather catastrophes. The heart of Switzerland was washed down, in the last week of August by the worst rains ever recorded. Parts of Germany and Austria were affected too. More than 200 litres per square meter in less than two days turned many mountain slopes into devastating mudslides. But in Portugal an unprecedented shortage of rain caused the spread of fires that erased 240 00 hectares of forest. Spain and France also suffered drought-related forest fires. With Katrina we experience exactly what many environmental scientists have predicted – wild weather events.

It reminds me of a brief I wrote at least 12 years back to the management of Dow about climate change. I argued that the greenhouse effect was real, that the dependence of our economy on burning fossil carbon creates a huge transfer of material from the underground to the atmosphere. 8 giga (9 zero!) tons of carbon so displaced every year cannot possibly go without impact. At that time scientists estimated the additional heat forcing effect of this carbon to be about 2.5 watts per square meters of earth surface. To my fellow engineers this seemed ridiculously small…Well, multiply by 510 065 000 000 000, the total earth surface, and you have a lot of energy. It is not evenly spread and it is more than enough to raise storms, to feed hurricanes or keep rain away for months.

The Portugal forest fires, the central Europe downpour and hurricane Katrina are the predictable face of climate change. And what we see of Katrina is almost what we saw of Jeanne that caused the murderous floods in Haïti last year. The same despair, the same paralysis in grasping the extent of the disaster and getting organized for rescue… just more TV coverage.

Americans and others wonder how this could happen to the world’s most powerful economy. But it may not be as powerful as it seems. It is surely best at projecting power in the rest of the world and has done so lately with relentless single-minded preparation. Yet, it may not be so good at caring for its people, at preparedness and crisis management. Its political and business class has fought against the precautionary principle for decades and it shows.

Economic power is counted as GDP - how much value is added by the economy. This is a superficial indicator. Anyone who travels through the US will notice, behind the prestige facades, the dire state of a good part of its infrastructure. It is an economy that adds value on generally obsolete public capital, highways, utilities, and water and power grids. It is distorted value. It gambles on risk and borrows on time. When the storm hits too hard the infrastructure collapses and reveals the disarray of the leadership. It is also a winner takes all economy with little compassion and solidarity and therefore large pockets of poverty. This is why some of the images of devastated Louisiana, Mississippi and Alabama are so close to those of Haiti last year.

What will happen after tomorrow? Will we see a forceful climate protection policy at last from the most resilient, innovative society? Or will it just be adaptation, higher levees, storm proof domes and shelters?

The solutions are ready – energy efficiency, alternative energy sources, carbon sequestration. So far it’s the will to implement that has been missing, not just in the USA, but almost everywhere. But the American policy is to blame most for systematically denying the science of climate change and undermining the collective efforts to reduce its risks.

However, with the price of the suffering of all the hurricane victims this could also be a serious turning point.

February 24, 2005

In search of Responsible Excellence - the MBA course

I had the occasion to teach the MBA course on environmental management and corporate social responsibility early this year in Barcelona for the Institute of Continuous Education of the Universitat Pompeu Fabra.

This prompted me to refresh and complete my collection of visuals and edit a lively case study that confronts the students with a typical business and social responsibility dilemma.

I named the course "In Search of responsible Excellence". It is a journey and there is a long way to go. It is a value driven journey towards a better future but it is enabled by the best in management skills and knowledge.

Here is the full 20 hours worth of material...

  1. Sustainable development - the political agenda
  2. The business agenda - corporate social responsibility
  3. Sustainability and innovation
  4. A case study in responsible excellence
  5. Stakeholders and boundaries
  6. Value creation - the evidence and the difficulties
  7. A performance model for responsible excellence

I'll be interested in your reactions!