Is sustainable finance becoming mainstream?

The Swiss newspaper Le Temps published a very interesting article on June 20 by Emmanuel Garessus on the topic of sustainable finance.

Based on a study published by Morgan Stanley the day before, sustainable investments worldwide reached a total amount of 22’800 billion dollars, and can no longer be considered a niche market. This means that a quarter of total investments made by professionals are following ESG (environmental, social and governance) criteria.

The annual growth rate of sustainable investments currently amounts to 11.9 % and continues to grow.

The majority of institutional investors, such as pension funds, foundations, insurance companies and sovereign funds, are now investing in this field, which used to be a niche a few years ago. Hedge funds are an exception to this trend.

Europe (12’000 billion dollars) and the United States (8’800 billion dollars) are major players in this field. Theme wise, climate change occupies the top position, ahead of inclusive growth and gender diversity.

Risk mitigation and potential return on investment are the main reasons why professionals invest in sustainable finance.

When I read the article in Le Temps, I had mixed feelings. On the one hand, it is very encouraging to see how quickly sustainable investments are increasing all over the world. On the other, we should remain aware that there are different levels of commitment from investors with regards to sustainable investments. A first level is exclusion (we just choose not to invest in the tobacco industry or in casinos, e.g.). A second level is the so-called “Best in class” approach where we decide to invest in company A instead of company B, because the former one has a better rating according to ESG criteria, even if we invest in non-renewable energy sources. The third level is impact investing where we select companies, which bring a real progress to the world, by addressing environmental or social issues and contributing to reach the UN SDGs (Sustainable Development Goals).

Unfortunately, the article doesn’t give any indication on the way the total amount of sustainable investment is shared between these different levels.

My personal opinion on this topic is that a shift towards more progressive and impactful levels of sustainable investments is as important as the total amount of these investments.

For that reason, the world needs more and more finance professionals with a solid background in sustainability, both at investing companies or institutions and at rating companies.

Philippe Du Pasquier, President of the Board

Appreciative Inquiry, Business Innovation and the SDGs – A winning combination

For the first time in September 2017 Business School Lausanne designed a case study course that used the UN Global Goals as a lens for students to take a step closer to business innovation in their community, exploring companies that are both profitable and doing good in the world.

In Part 1 of the course students needed to research a company they believe are doing work related to the SDGs. The students job was to help the company to uncover and reveal an important story that has happened to them related to a recent project where clearly “good for the world” was created, sometimes even unintentionally.

To find out whether their discovery was valid, they had a wealth of information available to them on the Aim2Flourish platform regarding the sustainable development goals and corporate innovation. Once a company and a contact person had been identified, students reached out through the power of our professional networks to connect, explain their intention, and set up an in-person interview with the specific business leader. The interview was prepared beforehand in class using the appreciative inquiry method. Based on the information interview and their additional research, students then wrote their stories and we went through a few rounds of revisions before submitting them to the AIM2Flourish platform. From the outset students knew they were part of a competition for the most innovative stories and that there was a possibility that their story would be chosen the following year as one of the best-of-the-best stories.

Early April I received a message from Aim2Flourish requesting confirmation that all the information in one of the stories written by a student was valid. I reached out to the company in question and liaised with the press department, made some modifications and on April 16, 2018  was advised that the story written by Karim Albekov had been awarded one of the 17 Flourish Prizes, based on the Promoting Gender Equity story he had written about the organization: IKEA.

This business’ story was selected as one of the 17 best stories exemplifying how business is a positive force for good and demonstrating progress towards the 17 UN Sustainable Development Goals (SDGs) published on the AIM2Flourish platform in 2018.

AIM2Flourish is a UN-supported global learning initiative where students discover and celebrate untold stories about business innovations for good, using the 17 SDGs as a lens. AIM2Flourish is an initiative of the Fowler Center for Business as an Agent of World Benefit at the Weatherhead School of Management – Case Western Reserve University.

Please join me in congratulating Karim Albekov for this excellent accomplishment and to all the other students who submitted their stories;  Alexandros Katsidonis,  Anna Iskanderova, Arsen Amanbayev, Lisa Foffano and Ana Cristina Junquira Ottoni. Give them all a big round of applause at graduation this summer for being the first to try and the first to succeed!

This year, Aim2Flourish will celebrate all of their 2018 Flourish Prize winners in a week-long, virtual celebration from May 7-11. During this time Aim2Flourish will host a global, multi-day celebration via our social channels on Facebook, Twitter, LinkedIn, Medium, and Zoom Video Conference with the hashtag #FlourishPrizes2018.

 

Author:

Nadene Canning, BSL Professor

 

Innovation at BSL: MEDICLY – A transparent blockchain healthcare system

Edited by Dr. Aileen Ionescu-Somers, Gap Frame Week designer and orchestrator

Student Group 1: Mariam Rawashdeh, Alexandra Gritsenko, Abdulkader AL Muhaidib, Andre Linney, Edoardo Danisi, Conrad Zawadzki, Mathieu Feltzinger, Grigory Klyuev, Tarek Talaat

DAY 1 – Ideation

Here we go, dear Readers; we are starting our Spring 2018 Gap Frame Week journey and this is our blog. Our group experience began with everyone introducing himself or herself and sharing personal insights. Out of the 8 members of our group, we had 7 different nationalities. This diversity helped us to get many initial ideas (80, to be precise) and different points of view.

We then discussed personal stories from our countries in connection to the health topic that we had unanimously chosen. What emerged is that health is certainly a multifaceted issue with many issues that need to be addressed. For example, we found during our research that even in developed countries, abuse and misinformation linked to use of medication is prevalent. What do guys think ? Is this a real issue?

While we talked, project ideas started to take shape, such as creating a transparent block chain healthcare system in which hospitals and pharmacies worldwide would be able to access the health background of virtually any patient. We discussed the pros and cons of a concept we called MEDICLY whereby any medical center or pharmacy across the globe could have access to an individual’s health record. The idea seemed appealing but we debated about the challenges of applying such an idea worldwide. For example, we established that there would be knowledge and communication barriers. Since we realized that applying this idea worldwide would be an immense challenge, we decide to stay at a country level, and to focus on Poland.

DAY 2 – Flexing of ideas

Let’s start the second day ! Our first task of the day was to identify relevant stakeholders. We then had to decide on some strategies to explore the feasibility of our Day 1 ideas.

The stakeholders we researched were Customers of companies, Cities & communities. Financial institutions, Consumers, Government and Regulators.

Customers of companies

We interviewed a pharmacist who was delighted with the idea and told us he would agree to take part in such a the project if it were launched. He found it simple, obvious and beneficial not only for the pharmaceutical business but for the entire health-care system.

Cities & communities

For cities & communities we sent an email to a local commune asking them about their opinions regarding the project, whether they would implement it in their commune and whether it is beneficial to them ? We also asked how it could work with local and Swiss regulations (knowing that in Switzerland, each commune is different).

Financial institutions

For financial institutions we interviewed an investor. The interviewed person said that he is observing a tremendous shift in technology and a tendency towards dealing with finance in very different ways (such as cryptocurrency). Medical health-care is an important aspect of human social existence and well-being. In his view, inefficiencies in the healthcare system inevitably translate into big problems for society. The investor we interviewed said that he believes in our idea and could see a future scenario where it may be possible to introduce it.

Consumer

For a consumer perspective, we interviewed fellow students of BSL and staff. The questions we asked were:

  • Do you think the current system of medical prescriptions is fair and functional?
  • Have you ever had any issues in trying to retrieve your or others medical records?
  • Do you know your blood type? If yes, do you have the blood type card with u at all times?
  • Do you know you if you have any allergies?
  • Do you think medical prescriptions are currently too easy or hard to get?

We concluded from the interviews that we had identified a problematic issue. People thought the idea was good but that there would probably be issues to solve regarding the handling of personal information and cloud safety (cybersecurity).

Government and Regulators

For governments & regulators, our team member contacted the Polish Health Ministry. We are still waiting for an answer….oh well…..you can’t win them all!

DAY 3 – Prototyping our concept

Today, we presented our project to all the students and faculty in the main auditorium. We got questions on how could we safely store patient data, and we had an interesting discussion around the block chain idea. Later in the day, we moved on to prototyping our idea. First, we carried out more research to get data that are more concrete and we decided to focus on the U.S. rather than Poland. Second, we shared all the information that different members of the team had been working on, combining and structuring our resources.

Back in our innovation space after our lunch break, we started working on the 10-prototyping criteria provided. We also made some decisions about what our slogan should be. Options we considered were: “partner in life”, “accessibility”, “partner for health”, “private health directory”, and we settled on the latter.

Once we finished the answers we went over the work done and refreshed everything for the opportunity we would have the next day to share our ideas with others and build on them (we call this session the “Frenzy”).

DAY 4 – Refining our prototype

Dear Readers: Here is the last part of our Spring 2018 Gap Frame Week blog!!! On this – the 4th day – we started organizing and planning for the Frenzy. We created posters and finalized the presentation, We even spoke with one of the other groups working on a health challenge also. We discovered that we had synergies and that seeking a partnership with the other student team might even make sense.

During the Frenzy we gave each other feedback. Our fellow students were highly engaged and gave many positive comments.

However, other students really wanted to understand how to ensure a sustainable flow of funding for the project once the program is sold to, for example, the government. We definitely need to focus on the funding model at our next Gap Frame Week in the Summer of 2018.

Once we integrated the feedback, we finished the presentation by adding our draft financial plan.

Phew…..we were finally done! Our team presenter rehearsed in front of everyone as, on the Friday – final day – we would only be allowed an 8 minute presentation. Wish us luck!!

 

BSL Gap Frame Innovation Week, Spring 2018: Is the world all set for MySet?

Blog by Dr. Aileen Ionescu-Somers with video blog by Student Group 2: Anastasiya Markova, Armen Danielyan, James Polit, Julia Bogle, Mathis Chailleux, Napat Suttaponga, Umar Kalanov, Vasily Zhuraviev, Victor Marinescu.

As promised, this is the first of several blogs relating to student output from our Spring Gap Frame Week 2018 prototyping exercise. We want our readers to share in the “buzz” that these weeks create within BSL. And we hope to inspire some of you also. Please refer to this article to understand more in detail what the BSL Gap Frame Week is all about. The short explanation is that the Gap Frame Week is an opportunity for our students to work on prototyping solutions and even start-ups addressing some of the world’s most formidable sustainability dilemmas. In Spring 2018, the students tackled social issues.

Of the eight groups that presented early prototypes of solutions to world social issues, an expert faculty panel on Day 5 felt that Group 2: MySet ticked many boxes in terms of the potential outreach and impact of the idea, if marketed carefully and in the right way.

So what is the concept idea that was prototyped, MySet, all about? In innovation, the best place to start is always with the problem the solution is trying to solve. Group 2 decided to address Education as the social issue worthy of their attention. Their research indicated that students in developing countries often do not have enough seating in their school classrooms. Small children often squeeze into cramped desks, several at a time, or even have to sit on the floor to attend their classes. India is a case in point where 75% of schools in rural areas have this problem. This leads to difficulties concentrating and learning, and even to longer-term physical problems since students are forced to sit in unnatural positions.

What proposed solution did Group 2 come up with? The MySet concept proposes an affordable, light, adjustable chair set made from recycled material. If marketed to the right target audience (obviously, since parents are too poor to afford such a solution, charitable foundations, NGOs and aid agencies would be an interesting target), MySet has the potential to be an interesting proposition. Clever idea. Let’s see how Group 2 does in developing this early prototype into a full blown start-up ready to attract investor interest, with a corresponding exhibition space during our next GFW in May.

The video blog produced by the Group 2 students listed above gives an idea of the journey they took to arrive at their final prototype. Click HERE to view; enjoy!

 

Ionescu-AileenPICTURE-150x150Author: Dr. Aileen Ionescu-Somers

Gap Frame Week designer and orchestrator

BSL and innovation: Does BSL’s Gap Frame Week create value for society?

At Business School Lausanne, we are proud to offer a highly dynamic Gap Frame Week (GFW) experience to our students four times a year. What does this mean, and what happens during these weeks? Well, you might be surprised to learn that our students work in teams to co-create solutions to the world’s most problematic social, environmental, economic and governance issues. Ambitious: yes!  A tough call: yes!  But no one ever said business school should be easy. As the GFW designer, I incorporate a variety of co-creative techniques including World Café and Collaboratories to get our students thinking “out of the box”, but I have also designed the week with a strong red thread of design thinking processes throughout to encourage open innovation and create an inspirational learning context.

Click HERE for a short video of our students in action during the BSL Gap Frame Week.

Design thinking is a process whereby we seek primarily to understand the people for whom we are designing products or services. Design thinking helps us to question “norms” or fixed mindsets, challenge assumptions about “what they want”, change levels of understanding in the innovation teams, and redefine problems in order to find a better fit between “the problem” and “the solution”.  Design thinking is not only a solutions-based approach to solving problems, but also a whole way of thinking and working in itself. It is a good choice for our BSL GFW innovation week because it is so useful in helping to tackle problems that are not very well defined or are even unknown. And since during the GFW, we are tackling problems that the world’s best minds have not yet resolved, we need all the help we can get!

During each Gap Frame week, our BSL students generate new matches between solutions and needs that truly create value for society. And who knows, maybe some will carry a brilliant business idea out of BSL and create value in the real world! We encouraged our students to write blogs recounting their experiences during the last GFW in Spring 2018, so that you too can have a taste of what the students achieve.  Some great examples will be showcased in a series of blogs leading up to our next GFW from 14 to 18 May, 2018. Keep reading our blogs over the next 4 weeks!

 

Ionescu-AileenPICTURE-150x150Author: Dr. Aileen Ionescu-Somers

Gap Frame Week designer and orchestrator

The man who could not move, but moved many: Professor Stephen Hawking

On 14th March 2018, the world sadly lost not only a brilliant and respected scientist who courageously triumphed over his own debilitating handicap, but also a highly valued sustainability ambassador and guide amongst the general chaos of thought leadership today. In learning this morning of Stephen Hawking’s demise at the age of 76, I recalled a favorite quote that is often attributed to him (but not proven to be something that he actually ever said):

“The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.”

Even if this great man never said this, it is a fine reflection of the underlying principle of his work and teachings. Nowadays, propagating an “illusion of knowledge” is a risk that all business schools need to take seriously. We live in an age when “fake news” is being purposely fed into information feedback loops, even by world leaders of democratic societies (I am purposely not mentioning any names!). We are witnessing an unprecedented era where truthful news outlets and honest agencies are easily undermined with accusations of fakery capable of sowing seeds of societal doubt around even scientifically proven facts. Indeed, fake news proliferates in today’s avalanche of information, creating an illusion of knowledge whereas in fact, we are sometimes being kept in ignorance. How can we see the wood for the trees? How do you fight against the “illusion of knowledge” enemy? We need to be ever more vigilant about developing skills in our BSL students that help them to critically assess content that uses new media forms, determine deeper meaning to events and language, properly “join the dots” and understand the world around them based on expert exploration and observation of facts, not fiction.

The vision and purpose of BSL is built around a pragmatic view that there are scientific and social realities – fact, not fiction – that the business world, and thus business people need to catapult to the top of their strategic priority list. Climate change mitigation and adaptation, for example, are amongst these critical realities. When the United States dropped out of the Paris climate agreement, Hawking was one of many credible voices to react, armed with the sheer weight of his own profound scientific knowledge. He wryly observed that Trump’s actions would certainly cause damage to our beautiful planet, and would ultimately bring humanity much closer to a tipping point where the Earth’s systems would break down, disabling humanity’s existence, and ultimately coming to resemble the inhospitable system of planet Venus. Remember that Hawking was a harbinger of doom, suggesting in 2016 that humanity would ultimately have no choice but to find an alternative planet to live on within the following 1000 years. He controversially modified this projection to 100 years just six months later, saying that escalating conflicts, development of militarized technology, weapons of mass destruction, threats from artificial intelligence and general geopolitics had massively increased the likelihood of collapse.

The objective of seeking another host planet for humanity is squarely on the agenda of one of the world’s most recognizable business figures today, Elon Musk, who also suspects that humanity may be doomed for the same reasons outlined by Hawking. His project to colonize Mars has the laudable aim of creating a safety net for humanity (preferably making money, and lots of it, at the same time….). However, the best hope for survival of humanity is still to act on the looming threat of climate change right here and now. For Hawking, we had already reached the eleventh hour, but it was still not too late. As he said in 2017: “Climate change is one of the great dangers we face, and it’s one we can prevent if we act now. “

Stephen Hawking was a brilliant ambassador for the thousands of scientists in the world that have placed their knowledge about the reasons for, effects of and solutions to climate change at the disposal of the business community. He knew that the illusion of believing that climate change was not happening was a force to fight against. Despite his own physical immobility, he also knew he could mobilize people by using his credible and highly respected voice. He exercised that power responsibly and sensitively. We join with many in the academic community that mourn the loss of such a spokesperson in a world where true and authentic leadership is increasingly rare and questioned.

 

Ionescu-AileenPICTURE-150x150Author: Dr. Aileen Ionescu-Somers

Active in thought leadership, consulting, applied research, teaching and supervising DBA candidates in sustainability & responsibility.

Philip Morris International & Sustainable Change

Sustainability is a highly complex concept that, at times, might be hard to integrate in a business environment. However, even companies that were not built with a sustainable focus in mind can turn the leaf and make a real change. A great example illustrating sustainable change is Philip Morris International, which BSL’s Master in International Business students visited on 16th January 2018.

The morning started with warm greetings from Huub Savelkouls, Vice President of Social and Economic Affairs. After a short coffee break, Mr. Savelkouls took us through what the future might hold for PMI’s stakeholders in our first presentation: “Transformation and Sustainability within Philip Morris International”. An interesting fact he mentioned was that, while the world population is growing, the number of smokers remains constant. This represents a great opportunity for Philip Morris to reevaluate their strategic focus. Mr. Savelkouls also tackled common misconceptions, suggesting that contrary to what people think, the tobacco industry can have an important role in solving the smoking problem. This is one of the main points within PMI’ sustainability strategy – convincing people to switch to less harmful products, such as the newly released IQOS device.

The release of this “reduced risk product” allowed Philip Morris International to publish their first ever Sustainability Report in 2016. One of the striking figures in the report is the fact PMI now allocates approx. 70% of their R&D spending on the development of smoke-free products, even though this segment currently only represents 12% of their net revenues. Their overall emphasis on the development of technology-driven, smoke-free products is a great example of sustainability being at the core of a major company’s strategic pivot.

Numbers aside, most students that attended the visit at the Philip Morris International Headquarters in Lausanne were pleasantly surprised by the overall work environment and culture. The free of charge gym, with provided gym attires, and motorsport-themed “Paddock” smoking area were the two favorite workplace perks among the BSL Master students.

To conclude, we would like to thank the people that made this visit possible and PMI for sharing with us their long-term vision on sustainability – hoping it will allow them to leave their competition in a cloud of smoke.

Author:

Ana Maria Login – MIB Master in International Business, Spring 2017 Intake

Merry Xmas and Happy New Year: Next steps and sustainable consumer behavior insights

This article is a first contribution of a trans-disciplinary applied research work in sustainable consumer behavior.

Did you enjoy the holidays? Were they as deeply satisfying as you hoped for? 

Holiday celebrations are over, another 2’366’000 Christmas trees have been sold in Austria alone, most of them are waiting to be recycled after a few short days of being admired. At the same time, most of these 2’366’000 buyers like to go for a walk in the forest – trees are essential for this natural experience!

At a superficial level, most people are aware of the big environmental issues, this awareness being perhaps limited to climate change, biodiversity loss (especially elephants, rhinos, pandas, polar bears, whales, bees, over-fishing), air pollution, deforestation, and plastic in the oceans. At the same superficial level, people care about major social issues, such as poverty, hunger, inequality, discrimination, violence, stress, insecurity. Furthermore, when asked, most people in most countries express “concern” for these issues.

MAK Wien, January 2018

So, let’s follow up with our consumer behavior experience: during the same holiday period, how does our tradition to offer presents square with our concern for the environment or other humans? Once it comes to deciding what present to offer a family member or close friend, consumers are willing to compromise, or even completely ignore the impact of their purchases. They end up with yet another half-toxic plastic toy for their child, a blouse made (by someone else’s child labor) in India, or the latest Nintendo gadget destined to soon become e-waste… isn’t this strange, as many expressed concern about the specific problem they are making worse by their own actions. Do we care at all? An excellent article about Xmas shopping, “The Gift of Death”, by George Monbiot, was published in the Guardian in 2012 – if anything, it’s even more relevant in 2018.

Beyond Christmas, in spite of all knowledge and expressed “concern”, most people behave in a massively self-destructive way most of the time, directly and personally contributing to the problem. Let’s look at this self-destructive, yet perfectly “normal” daily behavior: eating processed food based on industrial agriculture, traveling a lot, organizing one’s life around a car, following fashion in clothes or electronics, and simply participating in the consumer society all damage the environment (for example climate, biodiversity loss, deforestation, air-water-soil pollution), undermine healthy society (promoting discrimination, inequality, “lifestyle” diseases, poisoning from toxic waste, fueling conflicts and wars, displacing populations), and also destroy personal well-being (unhealthy lifestyle, poor nutrition, short-term focus, lack of meaningful social connections, stress and uncertainty).

Thus, it is a matter of fact that human behavior has to be seen as something complex that cannot be split into parts to be analyzed separately (Kollmuss and Agyeman, 2010). No internal and external factors justify a deconstructive individual behavior. As of today, researchers from different fields like psychology, sociology and environmental sciences have not yet found answers to this gap between being conscious about the need to change in regard to sustainability, and the willingness of change in regard to consumer realities.

Reasonably assuming that most people in most countries cannot be completely crazy, we must also assume there are other, even more powerful, forces at work. This will be the initial focus of our research.

Of course, a significant and growing minority is indeed starting to change, in areas as varied as nutrition (vegans, vegetarians, locavores and many other flavors), consumerism and shopping, zero waste, transportation and many more.

What are your resolutions for 2018? After one week, do you still expect to achieve them?

New Year Resolutions are a tempting way of “turning the leaf”, repeatedly and unsuccessfully practiced by a sizable majority. Much research in psychology explains why, and offers suggestions on how to improve the success rate, here is a good example published just last week. But, as it happens, 55% of health-related resolutions and many of the remaining ones are examples of willpower trying to fight the system of normal daily behavior described above, the “normative expectation”, a shared belief about how to behave. Of course, the “system” usually wins. Making sustainability the default, the new normative expectation is clearly our challenge.

MAK Wien, January 2018

The authors were inspired by an applied art exhibition “Aesthetics of change”, in the MAK (Museum of Applied Arts) in Vienna, Austria, a presentation of a trans-disciplinary work, coming from universities around the world, with insights in regard to sustainability. Beside a “future room” showing how consumers can access knowledge by simply pronouncing keywords, or standing in front of a camera showing an art photo of themselves, or observing a robot perfectly drawing a Mars landscape (who is surprised by this anymore?), we see this gap between visitors understanding future solutions and their daily consumer behavior. But there is one single message: any member of any social-technical group can become a change agent in regard to sustainability.

This brings us to our applied research question: Why do people continue destroying their own environment instead of changing their way of consuming?

We hope you’ll follow us on this exciting journey, and wish you a great, sustainable 2018 !

Authors:

Sascha Nick, BSL Professor

Alexandra Broillet, BSL Professor

 

It’s time to clean up the Internet!

2 weeks ago, I shared with the class this data and they were in shock! No one had thought about the impact of internet on the environment. Let’s have a look at this data.

Data centers today consume more than 3% of the global electricity supply and account for about 2% of total greenhouse gas emissions. This is equivalent to the carbon footprint of the airline industry.  And worse…the amount of energy consumed by the world’s data centers will be multiplied by 3 in the next decade. And this is only the tip of the iceberg because you must add to that your mobile, tablet, computer chargers, your ADSL/WIFI router…etc. In total, it is believed that the digital economy uses a tenth of the world’s electricity.

How does this happen?

Well, every day hundreds of millions of people take photos, make videos and send emails and texts. This deluge of data is growing fast and most of it is stored somewhere. Let’s have a look at some numbers.  “Every two days now we create as much information as we did from the dawn of civilization up until 2003”, says Schmidt, CEO of Google in 2010.  According to a new report from IBM Marketing Cloud, “10 Key Marketing Trends For 2017,” 90% of the data in the world today has been created in the last two years alone.

Are we doing anything?

It seems that there is the beginning of awareness. For instance, last year Kevin Systrom, Instagram’s CEO, was at Disneyland when he decided the internet was a cesspool that he had to clean up. There is also www.webneutralproject.com, a startup to design and create carbon neutral websites. Green Peace has issued its 2017 report called “Click Clean” which identify web sites which are the cleanest. Companies like Google are running projects to use less energy in their data centers but I question their intentions. Is it to reduce their carbon footprint as they claim or simply to reduce their energy bills?

Besides the companies and environmental groups initiatives I would argue that it comes to our own behavior to reduce the Internet footprint. Do you really need to keep all those emails, texts, photos and videos in a data centers?  Do you leave your chargers connected to the plug? Although government regulations have asked manufacturers to reduce standby consumption or vampire consumption as some experts would call it, this is still significant worldwide.

What to do?

The first step would be to delete your unnecessary mails, photos, videos stored on Google Drive or other cloud storages. Make sure they are effectively deleted! Try not to download files which jam the network and consume energy, stream instead.

But there are other more creative ways such as switching to eco-search engines such as Ecosia; making your Internet connection sustainable with eco-friendly Internet Service Providers, sharing your Wi-Fi with neighbors, etc.…

It starts with you!

Author: Philippe VedelProfessor of Digital Marketing and Social Media at BSL 

BSL – Reaching 30 and celebrating a new way of doing business

This year, BSL is 30.  Thirty is a good age for reflection: not too old to dwell overly on the past, but yet with a lot of learning under its belt upon which to build the future.  Because after all, BSL is both a learning institution and a future-thinking organization. BSL’s Aileen Ionescu-Somers reflects on new ways of doing business and the requisite leadership qualities for the future.

So many organizations, even the best minds out there, find it very difficult to predict the future. History is rife with poor predictions. The most glaring case in recent memory, though (apart from certain presidential elections!), was evidenced by a declaration by the IMF in 2007, just before the 2008 financial collapse, when the IMF declared:  “Overall risk to the (world economic) outlook seems less threatening than six months ago.” Not only did the IMF get it wrong. Most of the world’s multitude of economists, financiers, leaders and governments also did.

In some ways, this is a direct result of globalization. With it, the world became more complex and change accelerated. All the indicators show that the future will be even more unpredictable and uncertain than before. Yet, business does not like uncertainty. Uncertainty is associated with fear, anxiety and pessimism. Uncertainty can be the bearer of bad news. Stock markets are allergic to uncertainty. Business executives in global multinationals work so hard on cancelling out uncertainties that a senior executive told me once that “innovation does not come from big companies”, and that new ideas and “out of the box” innovations are often dead in global corporations before they are born.

Uncertainty breeds risk averse corporate cultures and risk mitigating instincts amongst managers. And the consequence is that we forget about the opportunities out there. Despite the feeling that there is a lot of bad news around, there are great things happening in the world. It is not fake news that life expectancy is still increasing. It is not fake news that income continues to go up for most of the world’s increasing population, and that illiteracy and poverty levels continue to go down.

These positive developments are actually huge opportunities for unleashing future potential for technological opportunity and development. And indeed, nowadays, much innovation is driven by technology. How accessible technology has become for ordinary citizens in my lifetime! The pace is set to increase exponentially over the course of our BSL student’s lifetimes. The future offers huge opportunities, giving future generations an unprecedented ability to do everything in new ways.

However, the down side is that with growing inequality, increasing numbers of now angry and vocal people feel left out. Indeed, they are either choosing not to participate – or are not empowered to participate – in building a better and more inclusive society. Another downside is the growing fragility of the complexity we have created in the world. When what happens in one place very rapidly affects everything else, this is what we call systemic risk.

System risks can convert into real life situations and then the system can start to break down; this is what we call systemic shock. By now, we have all either observed or experienced systemic shock first hand. We see it in financial crises, health risks such as ebola/pandemics, and in the major challenges related to migration in today’s world. Today, systemic risks and shocks are set to become much more virulent because of the interweaving of societies and sub-systems, re-enforced by technologies and accelerated by “just-in-time” management systems that push resilience and responsibility to its limits. As a result, the new realities we are living with are collapsing biodiversity, climate change, more pandemics, more financial crises…and ever more destructive systemic shocks.

Therefore, we need a new awareness of how to deal with these new realities. We need to understand how we can mobilize ourselves differently and come together as a community to manage systemic risks. We need to lessen the negative impacts of systemic shock and capture business opportunity for the greater good of society and celebrate new ways of doing business. How do we weave this complex tapestry together? How do we think about complex systems in entirely new ways? That is not only the challenge of scholars, but it is the challenge of all individuals engaged in thinking about the future. Business leaders are no exception.

Since business leaders are pragmatic, they need both frameworks and tools to guide their thinking. The UN Sustainable Development Goals (SDGs), for example, present business with a framework for understanding and mitigating future systemic risk.  Our BSL students are more than familiar with the SDGs, and what they represent. They are also familiar with the Gap Frame research, the conceptual basis for BSL’s thought leadership. The Gap-Frame is a normative framework that translates the SGDs into relevant issues and indicators for business. This BSL/University of St. Gallen research provides companies with a tool that helps translate the SDGs into workable steps to manage systemic risks around globalization more effectively and to achieve specific targets and objectives.

So the conceptual research at BSL closely relates to the SDGs, and I hope I have made the point that the SDGs relate to both systemic risk and shock mitigation. But they also relate to business opportunities. The SDGs are an underlying theme for the BSL Gap Frame Innovation Week (GFW) which we ran 4 times in the 2016/17 academic year.  Indeed, some of our students and even our faculty are far from their comfort zones during those weeks. During the GFWs, our students choose a problematic global issue linked to the SDGs and develop a start-up or innovation initiative to contribute to dealing with the problem. The GFW presents our students with a small concentrated “piece of the action” on leadership learning for the future.

And what are the key facets of leadership learning for the future? There can be no doubt that professional business acumen and expertise are as important as they ever were, if not more. But a sense of purpose directed by an ethical compass and a developed sense of both local and global responsible citizenship are also key prerequisites. The latter leads to levels of global knowledge and understanding that are also essential to, I would say, the very survival of organizations of the future.

We have recognized at BSL that much leadership learning today is reasonably strong on developing hard business acumen and expertise, but focuses too little on  multiple other essential albeit “softer” aspects of leadership learning. With this in mind, we can ask ourselves: What will be one of the most important traits of a future leader?  I would say, “curiosity”. The global business leader of today has to have a high level of global knowledge and understanding. Without curiosity, we will not have an effective or indeed knowledgeable leader. The SDGs, the BSL Gap Frame research and the BSL Gap Frame Week, provide current and future business leaders with routes or paths to satisfy curiosity, take action on what is learnt, direct ethical compasses, glean global knowledge and understanding from local and global committed citizenship and – actually – to prepare our students for their future.

For example, during our last BSL GFW on governance issues, our activities brought deeper knowledge and recognition to our students that the world’s governance systems are fossilized and cannot begin to cope with the changes that are currently happening and that will happen in the future. To celebrate new ways of doing business for the future, we simply have to develop new ways of managing the planet collaboratively, using collective wisdom. As I have pointed out at the beginning of each GFW, truly amazing things can happen when individuals come together to change their future.

Ionescu-AileenPICTURE-150x150Author: Dr. Aileen Ionescu-Somers

Active in thought leadership, consulting, applied research, teaching and supervising DBA candidates in sustainability & responsibility.