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INTERNATIONAL CONFERENCE   OF AIAER   on Internationalizing Higher Education January 28-30, 2008 Sustainable Future of Mankind: „ A Roadmap journey “ Mark Esposito, Ph.D. Affiliate Professor of Management & Behavior Grenoble Graduate School of Business  mark.esposito@grenoble-em.com
 
Outline Hypothetical analysis Strategic Questions Sustainable  Development Strategies and Tools Global  Trends ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sections can be used individually or in combination and tailored as appropriate to any educational program or company’s situation. However, please note that these sections are intended as a resource to supplement internal presentations, rather than as the sole basis for the creation of such presentations.
What is a classical definition of sustainable development? Social/Society Economy Environment Governance issue Traditional domain of political economy (ethics and economy/management) Time dimension Space dimension development seeking to meet the needs of the present generation without compromising the ability of future generations to meet their own needs Source: Bruntland report (1987) interdependencies
Reveal profound differences in problems and perspectives
 Global Issues Local Issues old rich millions affluence “ global people” resource surpluses causes of climate change technological knowledge theory driven research poor, young billions poverty “ local people” resource shortages impacts of climate change traditional knowledge action driven research Digital and capacity divides
What we Know -  State of the world environment warrants attention     1. Population   (x billion people)   2.5  3.8 5.8 10.7  2. Megacities   (>8 million)     2 9 25 200  3. Food   (calories/capita)   1980 2450 2770 2200 4. Fisheries   (Million ton/yr)    19 58 91 35 5. Water Use   (km3/yr)   1300 2600 4200 7500 6. Rainforest   (1950=100)   100 85 70 45 7. CO 2  Emissions   (billion ton/yr)  1.6 4.9 7.0 14.0 8. Ozone Layer  (CFC’s in ppb)  – 1.4 3.0 7.0 Source:  World Resource Institute, 1996     1950 1972 1997 2050
The challenge of sustainable development arises from these two major converging trends. Decline in resource availability and ecosystems Impact = Population x Consumption x Technology Diminishing margin for action Sustainability
World population is increasing to unprecedented levels.
Massive flows of material and energy are used to meet the needs of this expanding population. Source: USGS 1900 1960 1920 1940 1980 1995 0 500 1,000 1,500 2,000 2,500 3,000 Millions of Metric Short Tons Raw Materials Consumed in the US -More than all previous societies combined Graph of population growth
These trends are leading to a decline in the health and capacity of natural systems worldwide. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Atmospheric carbon dioxide (CO 2 ) emissions are rising. Carbon Emissions from Fossil Fuel and Cement 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 Million Metric Tons of Carbon Central and South America Africa Far East Centrally Planned Asia Middle East Centrally Planned Europe Oceania Western Europe Germany North America Source:  CDIAC
Surface temperatures have warmed over the past century. WORLD RESOURCES INSTITUTE
At the same time, millions of people worldwide are struggling to meet their basic needs. ,[object Object],[object Object],[object Object],11.7% 2.3% 1.9% 1.4% Richest Fifth Poorest Fifth (UNDP, Human Development Report 1992) 82.7% Distribution of Total World Income
This discussion is framed under the term Sustainable Development, which can be defined several ways. Meeting the needs of the present without compromising the ability of future generations to meet their own needs ,[object Object],[object Object],[object Object],[object Object],A better quality of life for everyone now and for generations to come
Companies evolve in how they manage environmental and related issues . Environmental Compliance Risk Management Sustainable Development “ End-of-pipe” Limit impact of current activities Pollution prevention; Management systems Redesign to eliminate impacts of activities Strategic integration Change activities and design of industrial system
Given the scale and nature of environmental problems, we need new mental models and ways of thinking to solve them. ,[object Object],[object Object]
Developing strategies to pursue sustainable development requires new approaches. ,[object Object],Traditional Approach Sustainable Approach Systems thinking - focused on interdependence of parts and optimizing whole system Environment/social implications addressed by staff specialist after strategic decisions made Environmental/social implications considered by decision-makers in designing strategy Forecasting: where are we today- how do we improve 5%  Backcasting: what would sustainable world look like in 30 years – how do we get there? Company’s position is  the  way  Stakeholder engagement to understand diverse points of view to find better solution
Redesigning our industrial system to be sustainable requires a shared framework to understand how nature works. ,[object Object],[object Object],Understanding these issues can contribute to creating a strategy that avoids these problems and finds the growth opportunity.
An organism’s survival depends on two critical functions from its environment: provision of resources and absorption of wastes.   Organism  Source Sink ,[object Object],[object Object],[object Object],[object Object],Absorb wastes and by products The same principle applies at larger scales, e.g., to an company, industry, or economy.   Environment
To maintain the integrity of these valuable services, we need to understand how nature works. No Waste ,[object Object],[object Object],[object Object],[object Object]
In contrast, our industrial system functions primarily in a linear fashion.   Take Make Waste Only 6% of material flow in ends up in products Source: Hawken, Lovins, Natural Capitalism   Take “natural capital,” structured valuable material, and process it into unusable waste
This industrial system, operating on an ever larger scale, is embedded in and affecting nature’s cycle.
The impact of our expanding industrial system on the environment affects both sources and sinks.   Forests Fisheries Topsoil Groundwater Freshwater CO 2 NOx Synthetic compounds (CFC’s, DDT) Urban development Deforestation Desertification Sources Key resource bases are being exploited at rates faster than their ability to regenerate. Sinks The available land area where nature can break down and recycle wastes is shrinking. The quantity and types of wastes created by industrial societies cannot be fully absorbed and recycled by nature. Economy  Environment
These impacts can create unexpected barriers for business . 3M decided to phase out production of Scotchguard (2% of annual sales) after finding trace amounts in blood samples of people and wildlife worldwide, even in countries where the product was never sold or manufactured. ($1 million charge against earnings in 2000) An activist group has convinced 250 major companies to commit to phasing out all purchases of old growth forest products.  At BHP’s large copper mine in Papa New Guinea, mine tailings have drained into a river for 15 years. This has led to class action legal claims and public scrutiny.  Shell faced NGO outrage and consumer boycotts of its gas stations over its decision to dispose the Brent Spar oil platform at sea.
Where is our company potentially vulnerable when considering these impacts? Sources Sinks Are we dependent on a threatened or sensitive natural resource? ,[object Object],[object Object],[object Object],[object Object],[object Object],Economy  Environment
How can our company find the opportunity for business growth by reacting proactively to these impacts? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Other barriers for business can arise when people feel their needs are not met or they are being treated unfairly.   Testimonial:  http://www.wbcsd.org/web/stream/sl/procter/pur.html   Global human rights groups and labor organizations are focusing increased attention on corporate practices.  The Internet can be used to quickly disseminate information about corporate practices worldwide. Shell was the subject of condemnation and boycotts by NGOs associated with its operations in Nigeria. It was viewed as having complicit involvement in the violations of human rights by state security forces and the lack of economic benefits of oil production for local communities.
Redesigning our industrial system to be sustainable also requires consideration of business’ role in meeting human and societal needs. ,[object Object],[object Object],[object Object],[object Object]
The Sustainability “Stool” Education for Sustainable Development Environmental  Principles Developing Systems Thinkers Spiritual Principles Social Principles Economic Principles
STUDENT ATTITUDE SKILLS KNOWLEDGE BUILDING CAPACITY for A SUSTAINABLE DEVELOPMENT
8 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],BUILDING CAPACITY for A SUSTAINABLE DEVELOPMENT
2000  UN Millenium Summit Halve  Extreme Poverty Universal Primary Education Empowerment of Women/ gender equality Reduce <5 mortality  by 2/3 Reduce maternal mortality  by 3/4 Reverse spread  of diseases, esp.  HIV/AIDS, Malaria Ensure Environmental Sustainability Form a  Global Development Partnership   for aid, trade, debt relief Millennium Development Goals by  2015 Background/ History cont’d

 
References ,[object Object],http://www.wbcsd.org http://www.sustainabletravelinternational.org /

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Sd Conference Aiaer Jan. 2008

  • 1. INTERNATIONAL CONFERENCE OF AIAER on Internationalizing Higher Education January 28-30, 2008 Sustainable Future of Mankind: „ A Roadmap journey “ Mark Esposito, Ph.D. Affiliate Professor of Management & Behavior Grenoble Graduate School of Business mark.esposito@grenoble-em.com
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  • 4. What is a classical definition of sustainable development? Social/Society Economy Environment Governance issue Traditional domain of political economy (ethics and economy/management) Time dimension Space dimension development seeking to meet the needs of the present generation without compromising the ability of future generations to meet their own needs Source: Bruntland report (1987) interdependencies
  • 5. Reveal profound differences in problems and perspectives
 Global Issues Local Issues old rich millions affluence “ global people” resource surpluses causes of climate change technological knowledge theory driven research poor, young billions poverty “ local people” resource shortages impacts of climate change traditional knowledge action driven research Digital and capacity divides
  • 6. What we Know - State of the world environment warrants attention 1. Population (x billion people) 2.5 3.8 5.8 10.7 2. Megacities (>8 million) 2 9 25 200 3. Food (calories/capita) 1980 2450 2770 2200 4. Fisheries (Million ton/yr) 19 58 91 35 5. Water Use (km3/yr) 1300 2600 4200 7500 6. Rainforest (1950=100) 100 85 70 45 7. CO 2 Emissions (billion ton/yr) 1.6 4.9 7.0 14.0 8. Ozone Layer (CFC’s in ppb) – 1.4 3.0 7.0 Source: World Resource Institute, 1996 1950 1972 1997 2050
  • 7. The challenge of sustainable development arises from these two major converging trends. Decline in resource availability and ecosystems Impact = Population x Consumption x Technology Diminishing margin for action Sustainability
  • 8. World population is increasing to unprecedented levels.
  • 9. Massive flows of material and energy are used to meet the needs of this expanding population. Source: USGS 1900 1960 1920 1940 1980 1995 0 500 1,000 1,500 2,000 2,500 3,000 Millions of Metric Short Tons Raw Materials Consumed in the US -More than all previous societies combined Graph of population growth
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  • 11. Atmospheric carbon dioxide (CO 2 ) emissions are rising. Carbon Emissions from Fossil Fuel and Cement 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 Million Metric Tons of Carbon Central and South America Africa Far East Centrally Planned Asia Middle East Centrally Planned Europe Oceania Western Europe Germany North America Source: CDIAC
  • 12. Surface temperatures have warmed over the past century. WORLD RESOURCES INSTITUTE
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  • 15. Companies evolve in how they manage environmental and related issues . Environmental Compliance Risk Management Sustainable Development “ End-of-pipe” Limit impact of current activities Pollution prevention; Management systems Redesign to eliminate impacts of activities Strategic integration Change activities and design of industrial system
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  • 21. In contrast, our industrial system functions primarily in a linear fashion. Take Make Waste Only 6% of material flow in ends up in products Source: Hawken, Lovins, Natural Capitalism Take “natural capital,” structured valuable material, and process it into unusable waste
  • 22. This industrial system, operating on an ever larger scale, is embedded in and affecting nature’s cycle.
  • 23. The impact of our expanding industrial system on the environment affects both sources and sinks. Forests Fisheries Topsoil Groundwater Freshwater CO 2 NOx Synthetic compounds (CFC’s, DDT) Urban development Deforestation Desertification Sources Key resource bases are being exploited at rates faster than their ability to regenerate. Sinks The available land area where nature can break down and recycle wastes is shrinking. The quantity and types of wastes created by industrial societies cannot be fully absorbed and recycled by nature. Economy Environment
  • 24. These impacts can create unexpected barriers for business . 3M decided to phase out production of Scotchguard (2% of annual sales) after finding trace amounts in blood samples of people and wildlife worldwide, even in countries where the product was never sold or manufactured. ($1 million charge against earnings in 2000) An activist group has convinced 250 major companies to commit to phasing out all purchases of old growth forest products. At BHP’s large copper mine in Papa New Guinea, mine tailings have drained into a river for 15 years. This has led to class action legal claims and public scrutiny. Shell faced NGO outrage and consumer boycotts of its gas stations over its decision to dispose the Brent Spar oil platform at sea.
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  • 27. Other barriers for business can arise when people feel their needs are not met or they are being treated unfairly. Testimonial: http://www.wbcsd.org/web/stream/sl/procter/pur.html Global human rights groups and labor organizations are focusing increased attention on corporate practices. The Internet can be used to quickly disseminate information about corporate practices worldwide. Shell was the subject of condemnation and boycotts by NGOs associated with its operations in Nigeria. It was viewed as having complicit involvement in the violations of human rights by state security forces and the lack of economic benefits of oil production for local communities.
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  • 29. The Sustainability “Stool” Education for Sustainable Development Environmental Principles Developing Systems Thinkers Spiritual Principles Social Principles Economic Principles
  • 30. STUDENT ATTITUDE SKILLS KNOWLEDGE BUILDING CAPACITY for A SUSTAINABLE DEVELOPMENT
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  • 32. 2000 UN Millenium Summit Halve Extreme Poverty Universal Primary Education Empowerment of Women/ gender equality Reduce <5 mortality by 2/3 Reduce maternal mortality by 3/4 Reverse spread of diseases, esp. HIV/AIDS, Malaria Ensure Environmental Sustainability Form a Global Development Partnership for aid, trade, debt relief Millennium Development Goals by 2015 Background/ History cont’d

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