Skills for a Greener Economy:
Realising the Potential
Cambridge
27 November 2012
Michael Townsend, Founder & CEO Earthshine
© earthshine solutions ltd.
Interesting times…
© earthshine solutions ltd.
Some progress, but…
© earthshine solutions ltd.
3
A skills gap?
• 1-in-3 environmental
firms hampered by
shortage of skills
• Conventional
economy?
• Unemployment
• Role of business
schools
• Integrated agenda?
© earthshine solutions ltd.
4
Rising to the challenge
• Strategic sectors
• Howconfigure jobs &
skills through the value
chain?
• From innovation to
installation?
• Political leadership,
business leadership,
management, & trade
level skills
• Worthy piece of work…
© earthshine solutions ltd.
5
Apollo: sustainability skills integrated
• Integration of new
technologies
• Process change
• Massive shift in ‘repair’
over ‘replace’
Shifting the business model:
• 42% waste reduction
• 34% energy & carbon saving
• Cost reduction
• Profitability doubled
• Saved 13% jobs
• Less money on
resources & waste,
more on people
• Waste-to-wages
• Mindset, as well as
technical skills
© earthshine solutions ltd.
www.sustainablebusinesslab.org
6
Life Technologies: green chemistry in action
• Augment approach to
eco-design criteria
• Beyond regulation &
compliance
• Chemistry as an
environmental solution
Green chemistry principles:
• e.g. NA-Fluor™ Influenza
Neuraminidase Assay Kit
• Substituted harmful sodium hydroxide
with non-hazardous sodium
bicarbonate
• Eliminates 100 litres/year
• Eliminate use of toxic
feedstocks, by-products,
solvents, etc.
• More cost-effective
•
For Life Technologies &
customers
© earthshine solutions ltd.
www.sustainablebusinesslab.org
7
Triodos: sustainable financial innovation
• One of largest investors
in renewable energy in
Europe
• Make money work for
positive social,
environmental & cultural
change
Market innovation:
• Renewable energy investments
• New sustainable financial products
• Bristol together: ‘Social Impact Bond’
• Buy empty, sub-standard properties
• Fully repair/refurbish
• Create jobs
• Scale up/replicate
• Mindfulness rather than
economics?
• Values-based
investment
© earthshine solutions ltd.
www.sustainablebusinesslab.org
8
Gazeley: emotional intelligence
• Leading provider of
sustainable global
logistics
• Journey towards
sustainable business
since 2002
“People change, not organisations”
• Eco-buildings at no extra cost
• 40% carbon and operational savings
• Developing emotional intelligence
enables people to seek out most
appropriate sustainable solutions on
projects.
• Sustainability not so
much about technical
skills
• Improve ‘culture’ through
developing emotional
intelligence
© earthshine solutions ltd.
www.sustainablebusinesslab.org
9
Leadership skills: a new bread of CEO?
• Evolutionary &
revolutionary
• A time for futurists
• Systems thinking
• Holistic, authentic &
evolved
• Humility
• Integrity
“A new generation of CEOs will emerge”
Ray Anderson, founder and former Chairman,
Interface Inc
© earthshine solutions ltd.
www.sustainablebusinesslab.org
10
Re-purposing existing skills?
Through visibility & granularity of cost, we can drive ‘waste’ out and add more value.
Current
7%
10%
Profit
Savings
Profit
Overhead
Overhead
Labour
?
Visibility of
‘Waste’
Realistic overhead
Sub Contractors
Labour
Materials
Average of
40% ‘waste’!
?
Realistic & fair
profit
Undeclared
Sub
Contractor
Visibility of
• Labour
• Sub Contractors
• Materials
?
Material
And/or spend more money on people, less on ‘stuff’ and ‘waste’: waste-to-wages
© earthshine solutions ltd.
11
Rethinking business
• Assumptions
• Externalities
• Resource availability/cost
• Waste/disposal
• Stranded assets
• Total cost of
ownership/affordability
• Value to society
“No amount of orthodox strategy, innovation, or competition – all premised on
economic harm – can help businesses, countries, economies, or the world
reignite prosperity in the twenty-first century.”
Umair Haque
(New Capitalist Manifesto, 2011)
© earthshine solutions ltd.
12
Towards a new business paradigm?
The upside…
• Longevity & resilience
• Green growth
• Enhance profitability
• Long-term shareholder value
© earthshine solutions ltd.
•
Focus on the long-term
•
Sustainability integrated
•
Resilient business models
•
Sustainable consumption
•
Eco-efficient in delivery
•
Circular economy thinking
•
Shared/blended value
•
Higher purpose
•
Towards sustainable capitalism?
“High Sustainability companies significantly
outperform their counterparts over the longterm, both in terms of stock market and
accounting performance.”
Harvard Business School, May 2012
13
The prize?
• Friends of the Earth:
Put another way…
• If total money saved by business was
reinvested, could create 1.4 million new
jobs.
• Improve flow of money circulating
(multiplier effect)
• Reality would be more profits; but
what if…?
© earthshine solutions ltd.
•
29,400 new recycling jobs if
reach 70% recycling for
domestic waste
•
+14,700 jobs in supply chain
•
+7,300 jobs
•
+18,800 jobs from
commercial/industrial
recycling
• Defra:
•
British businesses could save
£23 billion each year
(low/zero cost initiatives)
•
Pot increases to £55 billion if
include projects with payback
> 1 year
14
So much to do, and so little time…
“Greenhouse gases rise to record levels in
atmosphere.”
UN World Meteorological Organization, Nov 2012
“World headed for irreversible climate change by
2017.”
IEA World Energy Outlook 2012
“Only 3% believe that companies are succeeding in
fully integrating sustainability.”
Sky Future Leaders Study 2011
“We will need the equivalent of two planets by
2030.”
WWF Living Planet Report 2012
“We have only 5,0003,655 days to act!”
Joel Makower, Founder of GreenBiz.com
© earthshine solutions ltd.
“I never did see the business case for being
unsustainable.”
Ray Anderson, Founder & Former Chairman of Interface Inc
www.earthshinesolutions.com
www.sustainablebusinesslab.org
@mike_earthshine
15