A Clarion Call for Green MBA and Environmental Economics Education - Globally

Transcription

1 Issues and Challenges Facing Environmental Education and Outreach Air & Waste Management Association 101 st Annual Conference June 26, 2008 Portland, OR, USA A Clarion Call for Green MBA and Environmental Economics Education - Globally Ram Ramanan, PhD, PE, MBA, BCEE, QEP President, T3, a division of Trinity Consultants trinityconsultants.com tthree.com

2 Why do we need environmental economics and/or Green MBA? Why go beyond compliance? What is a good framework for this education? 2

3 Why do we need environmental economics and/or Green MBA? Father of a Nation, Mahatma Gandhi ( ) Earth provides enough to satisfy every man s need, but not every man s greed." most M.B.A. students care even less about the environmental and social impact of commerce after they graduate from business school than they do before they enter 04 A company's record on environmental issues ranked at the bottom of factors MBAs are using to select employers... Also close to the bottom were corporate ethics, social responsibility, and community involvement. 1/15/2008 3

4 Why do we need environmental economics and/or Green MBA? Stakeholders are driving move beyond compliance Investors and businesses To protect assets, investments, brand value, and sustainable long term earnings from threats of law suits, environmental disasters, disruptive technology or substitute products through responsible behavior, innovation and entrepreneurship Consumers and Society To protect progeny and planet from real or perceived threats of Climate change, resource shortage, and potential environmental disasters through regulatory intervention, transparency in reporting and preferential buying (e.g. renewable energy, hybrid cars, supply chain greening) 4

5 Why do we need environmental economics and/or Green MBA? Reactive Response Proactive Programs Sustainable Stewardship Apply decision analysis Develop and implement green strategy Integrate and analyze data, implement audits, management systems & metrics Governance Carbon asset mgmt., Green market opportunity Automate EHS&S data management, corrective actions and reporting chores Risk Management MS, Audits, Metrics Compliance EPA & SEC Organization culture drives level and timing 5

6 Why do we need environmental economics and/or Green MBA? Market demand is shaping the skill needed Carbon markets are vast & crucial Green opportunities offer profit potential Corporate social responsibility is a new dimension Businesses are moving beyond compliance Non-profit and green investments are growing Regulators, policy makers and a new breed of social cause students are emerging 6

7 Why go beyond compliance? To protect investments. World s richest man & investment icon, Warren Buffet Track financial performance of sustainability-driven companies "It takes twenty years to build a reputation, and five minutes to ruin it." Coverage DJSI World STOXX PAN Europe North America North America Launch

8 Why go beyond compliance? To protect our planet. Economic instruments Shareholder resolutions Institutional investors carbon disclosure project Insurance risk premiums Socio-political instruments Litigation Federal legislation State/regional regulation Voluntary initiatives Common man with an uncommon vision, 19 th century Cree Indian Only after the last tree has been cut down, Only after the last river has been poisoned, Only after the last fish has been caught, Only then will you find you cannot eat money 8

9 Why go beyond compliance? To lead markets. Wal-Mart s three ambitious goals: Use 100 percent renewable energy Create zero waste and Sell products that sustain Wal-Mart's resources and the environment Supply chain greening includes: Identify Goals, Metrics, and New Technologies Certify Environmentally Sustainable Products Provide Network Partner Assistance to Suppliers Commit to Larger Volumes of Environmentally Sustainable Products License Environmental Innovations 9 World s largest retailer Wal-Mart s CEO, Lee Scott

10 What is a good framework for this education? Academia Responds Scientist extraordinaire Albert Einstein ( ) The concern for man and his destiny must always be the chief interest of all technical effort. Never forget it among your diagrams and equations." Australia U. of Queensland offers an executive Sustainability MBA program UK London Business School and Cambridge MBA programs mandate sustainable development courses Canada - York University Haub Program in Business and Sustainability provides Senior Executives insight USA Berkeley, Michigan, MIT Stanford, and Yale offer joint MBA or interdisciplinary programs focused on social and environmental responsibility. 10

11 What is a good framework for this education? Green MBA A Green MBA would teach the triple bottom line - people, planet, and profits; how to make money and do social and environmental good concomitantly? Environmental Economics education will serve as the foundation to fully integrate business and the environment. SOCIAL: reconciles community and bottom line ECONOMIC: looks beyond the cost/benefit of social and environmental activities on to planning and investment for more sustainable growth ENVIRONMENTAL: applies design and technology to change paradigms, 11

12 What is a good framework for this education? Environmental Economics Environmental economics basics Environmental policy Link between economy, policy and the environment: Environmental markets Link between environmental and financial performance: Corporate strategy and the environment Environment friendly products Coursework based on - SJM School of Management, Indian Institute of Technology, Bombay Spring Term I, 2006, Course: Environmental Management MG 683, R. Ramanan, PhD and S Rege, PhD Suggested Readings: Kolstad, Charles D., 2000, Environmental Economics; Labatt, Sonia and Rodney R. White, 2002, Environmental Finance; Stavins, Robert N., ed., 2005, Economics of the Environment: 12

13 Back-up Slides Issues and Challenges Facing Environmental Education and Outreach Air & Waste Management Association 101 st Annual Conference June 26, 2008 Portland, OR, USA A Clarion Call for Green MBA and Environmental Economics Education - Globally Ram Ramanan, PhD, PE, MBA, BCEE, QEP President, T3, a division of Trinity Consultants trinityconsultants.com tthree.com

14 Top Ten Lists Rank United States Schools Rank European Schools 1 Stanford University 1 Instituto de Empresa 2 The University of Michigan 2 ESADE Business School 3 University of California, Berkeley 3 Rotterdam School of Mgt, Erasmus U 4 University of Notre Dame 4 The University of Nottingham 5 Columbia University 5 University of Jyväskylä 6 Cornell University 6 Copenhagen Business School 7 Duquesne University 7 INSEAD 8 Yale University 8 IMD - International Inst. for Mgt. Dev. 9 New York University 9 Cranfield School of Management 10 The U of North Carolina, Chapel Hill 10 University of Bath 14

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