A House of Enterprise Resilience to Climate Change

Transcription

1 A House of Enterprise Resilience to Climate Change Ulrike Gelbmann Co-Authors: Romana Rauter, Ulrike Seebacher, Rupert J. Baumgartner Institute of Systems Sciences, Innovation and Sustainability Research (ISIS) University of Graz

2 Agenda Research Gap and Research Questions Research Approach Results: A House of Enterprise Resilience Conclusions and Future Research 2

3 Research Topic Climate change is an increasingly important strategic issue for the business sector because of its complexity and potential impact. Can we fruitfully make use of existing concepts to help enterprises adapt to, prepare for, and cope with consequences of climate change? 3

4 Research Questions Which aspects of climate change adaptation do enterprises have to consider and integrate? How can findings from climate change and resilience research be transferred to enterprise level? How can scientific knowledge in the square of CSR, crisis management, climate adaptation and resilience be integrated to support strategic management? 4

5 Research Approach Conceptual Approach Literature Review Preliminary overview of synergies between the concepts 5

6 Where are the synergies? Strategic Management 6

7 IS THERE A SYNERGY BETWEEN CLIMATE CHANGE ADAPTATION, CSR, AND STRATEGIC MANAGEMENT? 7

8 The New IPCC Report Tagcloud performed by Gianna Grün, Die Zeit 8

9 Categorizing Climate Change Effects on Enterprises (I) Active ability to provide disaster relief (e.g. equipment, emergency accommodation) infrastructure recovery aid (e.g. building, electrical services, house painting) Passive becoming victims of a climate change induced catastrophe (water ingress, flooding, unroofing) Source: Walther (2010) 9

10 Categorizing Climate Change Effects on Enterprises (II) Primary effects e.g. sudden serious events Secondary effects e.g. skiing tourism - no more snow in winter Tertiary effects e.g. changing stakeholder configuration Source: Walther (2010) 10

11 The new GRI G4 Index 5 out of 34 environmental indicators directly address climate change Source: 11

12 CSR and Sustainability Management Climate Change Adaptation 12

13 Coping Strategies for Climate Change No-regret strategies Reversible strategies Safety margin strategies Soft strategies Reducing timeframes for decision-making Source: Hallegatte (2009) 13

14 Key dimensions of Climate Change Adaptation Climate-sensitive domains Planning horizon Types of climate hazard Predictability of climatic changes Non-climatic conditions Purposefulness Form Actors Source: Füssel (2007) 14

15 Prerequisites for Effective Planned Adaptation Awareness of the problem Availability of effective adaptation measures Information about measures Availability of resources for implementing measures Cultural acceptability of measures Incentives for implementing measures Source: Füssel (2007) 15

16 Strategic Management CSR and Sustainability Management Climate Change Adaptation 16

17 IS THERE A SYNERGY BETWEEN CLIMATE CHANGE ADAPTATION, ADAPTABILITY/RESILIENCE AND STRATEGIC MANAGEMENT? 17

18 Climate Change Adaptation as a Process orchestrated response to predicted impacts cause-effect-like set of measures linear, identifiable trajectory Evolving process including learning about risks, evaluating response options, creating right conditions, establishing communication Source: Tschakert, Dietrich (2010) 18

19 Climate Change Adaptability refers to ability to learn from mistakes generating experience of dealing with change being capable to innovate learning, experimenting anticipating, and forecasting through knowledge sharing and responding. Source: Tschakert, Dietrich (2010) 19

20 Strategic Management CSR and Sustainability Management Climate Change Adaptation Resilience, Adaptability 20

21 IS THERE A SYNERGY BETWEEN ADAPTABILITY/RESILIENCE AND CRISIS MANAGEMENT? 21

22 Adaptive Cycles Source: Gunderson, Holling (2001) 22

23 Resilience is the capacity of a system to absorb disturbance and reorganize while undergoing change so as to still retain essentially the same function, structure, identity, and feedbacks. Source: Walker et al. (2002) 23

24 Risk/Crisis Management means identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events. Source: Hubbard (2009) 24

25 Resilience in Enterprises boundary to management cybernetics McManus resilient organization 25

26 Strategic Management CSR and Sustainability Management (Enterprise) Crisis Management Climate Change Adaptation Resilience, Adaptability 26

27 IS THERE A SYNERGY BETWEEN CRISIS MANAGEMENT AND STRATEGIC MANAGEMENT? 27

28 Improving levels Value Chain of Crises Management crisis preparedness content, events, (re-)actions processing internal/external information actors/organisation crisis communication psychological factors crisis occurrence crisis coping crisis reflexion crisis prevention early warning damage containment recovery and relaunch crisis learning Phases Source: Gelbmann (2003) adapted from Töpfer (1999) 28

29 Strategic Management CSR and Sustainability Management (Enterprise) Crisis Management Climate Change Adaptation Resilience, Adaptability 29

30 IS THERE A SYNERGY BETWEEN CSR/SUSTAINABILITY MANAGEMENT, RESILENCE/ADAPTABILITY AND CRISIS MANAGEMENT? 30

31 CSR/Risk Connection Source: Petersen/Vredenburg (2008) 31

32 Value added CSR Strategy and Risk Management Shareholder Value Compliance Philanthropy Risk & Value Management Strategic Differentiation Pioneer - Measuring of economical an social values - Linking CSR to strategy & core business - Processes & systems - Responsibility and value management Risk - Individual projects - Responsibility as nice to have - Philanthropy orientation - Reports PR-oriented - Legal compliance - Integration into strategy - New incentive systems - Product Innovation - New markets - Active Stakeholder dialogue - Leader in the industry - Focus on short term profit maximisation - Poor reputation management - No mesuring of non-financial aspects Opportunity Laggard Source: Gastinger/Gaggl (2012) based on PwC (2011) 32

33 CSR and Risk Integration Source: Starr, Newfrock, Delurey (2003) 33

34 The House of Enterprise Resilience to Climate Change Strategic Management CSR and Sustainability Management (Enterprise) Crisis Management Management requirements Climate Change Adaptation Resilience, Adaptability Generic scientific foundation 34

35 The House of Enterprise Resilience to Climate Change Strategic Management CSR and Sustainability Management (Enterprise) Crisis Management Management requirements Climate Change Adaptation Resilience, Adaptability Generic scientific foundation 35

36 Conclusion Addressing the possibilities of enterprise adaptation to climate change induced challenges is vital. Five concepts can help enterprises to meet new challenges strategic management, CSR/sustainability management, crises management, resilience, climate change adaptability Ties between strategic concepts: strategic orientation, adaptive learning, dynamic approach 36

37 Future Research Enlarge what has been done so far (literature review). Investigate HOW the ties could be meaningfully used for the companies. Investigate stakeholder sytem of enterprise climate change challenges. 37

38 References Starr, R., Newfrock, J., Delurey, M. (2003). Enterprise resilience: Managing Risk in the Networked Economy, in Booz Allen Hamilton Inc (2003): strategy + business magazine, 30. Füssel, H.-M. (2007). Adaptation planning for climate change: concepts, assessment, approaches, and key lessons. Sustainability Science, DOI /s y. Gastinger, K., Gaggl, P. (2012). CSR als strategischer Managementansatz, in Schneider, A., Schmidpeter, R ). Corporate Social Responsibility. Verantwortungsvolle Unternehmensführung in Theorie und Praxis. Springer Gabler: Berlin Heidelberg. Global Reporting Initiative, G4 Sustainability Reporting Guidelines, online Gunderson, L.H., Holling, C.S. (2001). Panarchy. Understanding Transformations in Human and Natural Systems, Island Press: Washington D.C. Hallegatte, S. (2009). Strategies to adapt to an uncertain climate change. Global Environmental Change, 19, Hubbard, D. (2009). The Failure of Risk Management: Why It's Broken and How to Fix It. John Wiley & Sons: Hoboken. Marshall, N.A. (2009). Understanding social resilience to climate variability in primary enterprises and industires. Global Environmental Change, 20, Petersen, H., Vredenburg, H. (2009). Corporate governance, social responsibilty and capital markets: exploring the institutional investor mental model. Corporate Governance, 9(5), Töpfer, A. (1999). Plötzliche Unternehmenskrisen, Gefahr oder Chance? Luchterhand: München. Tschakert, P., Dietrich, K.A. (2010). Anticipatory Learning for Climate Change Adaptation and Resilience. Ecology and Society, 15(2):11, online Walther, G.-R. (2010). Community and ecosystem responses to climate change. Philosopical Transactions of the Royal Society, 265, Walker, B. et al. (2002). Resilience Management in Social-ecological Systems: a Working Hypothesis for a Participatory Approach. Conservation Ecology 6(1): 14. online 38

39 The resilience and adaptive capacity of resource-dependent industries have never been more important to assess, influence and monitor. (Marshall, 2009) THANK YOU FOR YOUR ATTENTION! 39