Upon reviewing an article from the WBCSD (World Business Council for Sustainable Development) and based on studies from the (IEA) International Energy Agency on the needs for energy in global development, one issue became crystal clear; that without investors feeling the need to move their funds toward Sustainable Technologies and Sustainable companies, there would be insufficient capital to keep up with growing global energy demand. While this causes a major problem for “developing” countries, it also causes a major challenge to move towards sustainable energy in “developed” countries. Note that I have added the quotes because, in a world that is being injured by much of the development we have experienced, one may question the long term efficacy of the whole notion of “development” as we currently know it. The term “Developed” in the fullness of time will more likely be something like “mature” and mature has a very different implication. What mature country would continue to destroy it’s own environment? Well, that’s a different topic so let’s move on.

In a quote from the report the author states that “Today private sector investments constitute the largest share (86%) of global investment flows and are expected to be essential to addressing climate change. A large additional flow of tens of billions of dollars will also be needed for adaptation.”

One of the most effective means of a government to weild it’s financial power is to influence the direction of Private Investment Capital. Rather than trying to “be” the investor as in many of the current government incentive scheme’s which directly invest, wouldn’t it be possible to take a different approach? » Continue reading “How to move Investment Capital to Sustainable Technologies”

An interesting news item made me ponder on the how optimum the current market is for creating and acting on new ideas.

The news item was about Canadian research on obesity and how the researcher was regarding obesity as an auto-immune disease which impacts T-cell production by reducing the so-called “Good” T-cells and increasing the “Bad” T-cells. The researcher indicated that already they had found ways of normalizing T-cell production in mice and that potential treatments for humans are on the horizon, the implication of which would be a potential for reducing obesity, type 2-diabetes, and the plethora of diseases associated with obesity.

From a health perspective, such a discovery has amazing potential for reducing the costs of health-care, especially in developed countries where obesity is prevalent. But that same discovery could be devastating for the long term and potentially even short term profits of drug companies that have invested billions in research for treating symptoms.

At this point, it is a hypothetical problem but leads to the old question: Do drug companies hide cures, do oil companies buy up technologies up like cold fusion, do auto companies crush electric cars to protect current investments? Do large multinationals buy up threatening new technologies in order to protect their original investments in outdated technologies at the peril of greater human interests?  What does or should a top executive pay the most attention to when they make decisions: personal reward, company profits, shareholder dividends, their own sense of power to make decisions, building a legacy or ethics?

Asked the opposite way: Can we make a better system of economics for propagating new ideas which uses profit potential in different ways? Can we create incentives in our economic system that would consistantly encourage executives to make decisions based on any one of the above motivations and still come up with the same decision, ideally the one that benefits human society the most?

» Continue reading “Thoughts on Creating a Sustainable Capitalism”

An on-going theme in the world is how countries tend to argue about land claims, especially when resources are involved. Businesses have similar disputes over intellectual property, defense of minerals rights, and other competitive matters. Individuals have disputes over ideas, who is right and who is wrong. Whenever one person or one institution violates the claim or values of another, disputes arise. 

Conflict, by it’s nature, signals a need for change. But underlying the existance of conflict is a deeper and more distressing issue. The fact that we accept conflict as a tool and allow conflicts to flourish signals a lack of maturity in human creativity and development. If not handled with extreme care, conflicts are destructive, either physically, spiritually, emotionally, financially, socially or environmentally. The larger the dispute, the more destructive.

What’s worse is that conflicts tend to be destructive long after the disputing parties find a way to stop the dispute. They continue to cause challenges as long as bad feelings linger, until learning occurs, mindsets change and reparations are completed. Some disputes unfortunately last centuries.

But there are better and more creative solutions that using conflict to find solutions. Let’s look at a few impacts of conflict and consider alternatives. » Continue reading “Reaching the future together (Leadership, Conflict, Sovereignty and Organizational Culture)”

As we watch the news of enormous red dust clouds over Arizona and Australia due to record drought, the discovery of the record melting of Icebergs in Greenland at a rate that the IPCC models failed to predict, record temperatures being set in northern and western Canada, record flooding in Atlanta which is sweeping people and vehicles away and  record wild-fires in California all at the same time, in addition to the recent first time ever passage of a commercial German vessel through the north east passage without an icebreaker, along with record flooding this year in Taiwan, Burma, and Vietnam, if there was any doubt left that we are experiencing climate change, there certainly isn’t anymore. And anyone who believes that it’s not caused by human activities simply isn’t accepting reality.

The question now is, how will the world be impacted and how will businesses respond? Although there is still far too much rhetoric, even the world leaders at the UN Summit on Climate Change preceding the Copenhagen meeting, most notably Obama noting that “the old habits, the old arguments are irrelevant”, are beginning to speak seriously about the issue. Even China, which understandably refuses hard targets in the light of excessive energy usage and emissions from developed countries, is taking a leadership role in developing solar, wind and other renewable energy sources.

 The question is not about whether changes in business will occur: the question is, what will drive business the most? Will there be sufficient agreement on policy and limits at the global or national government levels or will the change in the earth’s environment itself be the greatest imputus for business to adapt and what will that mean for business? » Continue reading “Climate Change impact on Business Leadership and Planning”

In a 2006 article written by US Senator Jim Webb, he addressed an increasing disparity between salaries of CEOs and their employees, where CEO salaries top 400 x the amount of their average employee, vs 20 years ago when the difference was 20 x. Recently with the economic downturn, an even brighter light was focused on this issue as a result of failing financial institutions doling out rich and unjustified executive bonuses. Those of us who are not in the position of a major corporate CEO may view this disparity as a fundamental injustice. While there will always be richer and poorer in the world, the extremes of wealth and poverty can be problematic for a number of reasons, even though there are arguments which strive to justify these compensations.

But are they helpful or hurtful to global development? » Continue reading “Global Corporate Development – CEO Salaries and the (positive) impact of Outsourcing”

When I heard about the existance of the Cash for Clunker program, it seemed like a reasonable approach to start stimulating the economy and to get some potential benefits for the environment. After hearing a few of the details, I thought perhaps there is room for improvement. Mr. Obama suggested that if there’s a better idea, then use it no matter what the source. So here are a few ideas to improve the program, for what their worth. » Continue reading “US Cash for Clunker program”

According to a report by Environmental Leader, Wal-Mart will be announcing a new sustainability index initiative for rating the sustainability of products that it sells. The initiative will include other retailers, researchers, universities and suppliers and possibly go so far to look at entire life-cycle of the products with the goal to reducing or eliminating non-sustainable products. Also according to the report, while they plan to start the initiative, they also plan to hand it off to a group yet to be formed to ensure neutrality in reporting and rating. » Continue reading “Wal-Mart’s Sustainability Index Initiative”

For many in our society, the Green shift is still something that we recognize only through TV programs by David Suzuki or presentations by Al Gore in his program “An Inconvenient Truth”. Of course, most of us are also beginning to see many of the practical sides of being Green. After all, if we can change a light bulb and get the same light with a compact florescent, get the same heat with high efficiency furnace or the same distance with a hybrid car, save money and the planet at the same time, why not?

Although there is definitely a movement is in place to change the way the world works, most people don’t take a very serious plunge into environmental action unless there are financial rewards for doing so which, at very least, match the effort required to make that change. » Continue reading “The Power of Local Initiatives, Green T”

Better place (http://betterplace.com) has a better idea.

Shai Agassi, CEO of Better place, rather than trying to convince us that it’s  the right thing to do from an environmental perspective, wants to convince us that it’s a much better thing to do from a commercial perspective.

Going to Electric cars and electric infrastructure, using his plan, will revolutionize the way we think about travel, cost of cars and the price we pay to get where we need to go. And at the same time, we will use clean sustainable energy, clean quite electric cars, and we don’t have to wait 20 years.

Aggasi has been invited by a number of Governments to start working on his infrastructure immediately. » Continue reading “Electric Infrastructure by BetterPlace”

It is gratifying to live in a time where we can witness a gathering of world leaders, sitting down together to speak rationally, listening with maturity to the ideas of others about the situation the world now faces and seeking to come to consensus through consultation. 

Each speaker recognized the contribution of their own nation and the others. Each recognized the need for reaching a united outcome for restoring global confidence. Each acknowledged the complexity and interconnectedness of the economies and the need to use the best ideas regardless of their source.

Mr. Obama’s comments following the meeting demostrated a sense of humility and honor toward the other world powers. Upon being asked what he didn’t get, he declined to name any particular point, rather yeilding to what was agreed upon. He indicated that it would have been an easy discussion if it were only two world powers to make all decisions but recognized that although having 20 nations was more complex, it was “good” that the other world powers had re-built themselves so that they could also contribute to the discussion with legitamacy as co-owners of the world economy. 

Humility is the true sign of leadership and Mr. Obama, in his comments to the press after the conference, demonstrated his humility each time he listened to a press member, thoughtfully reflected on his answer and responded accordingly. Each time, he indicated that the much of the value in the decision was not so much that any of them knew exactly the right solutions, but rather that in agreement they had set the stage to try something out and then learning from their actions. And then if the current actions didn’t work, they would try something else.

Mr Obama was complementary to all the other leaders but his comments towards the Prime Mister of India were particularly gracious.

Prime Mister Brown of the UK likewise commented on the historic achievements of the meeting. And in answer to a question about the potential for introduction of a global currency he was positive in the sense that that he accepted it as a valid idea, but indicated that a detailed proposal for implementing a global currency had not been presented and therefore it was not pursued at this time. 

With the exception of a few minor glitches, such as the photo op missed by Prime Minister Harper, each of the member demostrated respect for the other nations and their respective leaders.

Regardless of whether or not they accomplished as much as would have been desired it was an excellent display of consultative decision making. It had positive outcomes for agreements on banking regulation, IMF funding, agreement on the need to revise IMF approvals, assistance for poor nations, and agreement in principle on supporting green technology.

No doubt there will be naysayers who find fault with the outcome of the G20 meeting, some indicating that the global agreements on regulation have “no teeth” and others that not enough was accomplished and still others that it lacked detail for implementation of some of these conceptual agreements. But from my perspective, it was a true demonstration of statesmanship and a sign of hope for an ailing world.

Do I think the agreements made will turn the economy around? Probably not! The challenges are still immense. Do I think it will contribute to long term stability of the economy? I believe it was a very positive step if for no other reason than it helped to increase understanding between nations.