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21 июля, 14:00

How Royal DSM Is Improving Its Geographic and Gender Diversity

Jennifer Maravillas for HBR With the recent spate of firms in the news over sexual harassment allegations and charges of gender bias, it is obvious that an issue many in business had thought was “done” is instead far from finished. Fostering corporate cultures which make half your employees feel somewhere between unengaged and unsafe is becoming risky and unsustainable. A lot of companies are doubling down on efforts to finally “crack” the gender issue. Most companies now have more gender-balanced talent pools, especially at the early-to-mid-career levels, and are looking for ways to make sure progress continues at the mid-to-upper levels. But the ones who really understand the issue see gender balance as not just a numbers game but part of a broader, more strategic cultural shift that includes developing leadership teams representing geographically diffuse markets. These leaders are recognizing that this balance drives the innovation and market understanding they need for other key business transformations. Without balance, they simply won’t understand the world that’s emerging. Dutch-based Royal DSM is a case study of multiple parallel transformations – in their business and in their leadership balance. The CEO is convinced that the one feeds the other. “I’m absolutely convinced that the evolving balance of the top management team is a key factor in our success and our ability to change,” Feike Sijbesma, the 57-year-old CEO of Royal DSM, the $8 billion, global company active in health, nutrition and materials science, told me. I reached out to him because I was impressed with how he steered DSM from its chemicals company past to its broad, science-based innovator present; from a Dutch company to a global player; and from a completely male-run organization to a more gender balanced leadership team. How did he do it? Sijbesma credits three steps: Setting a vision that connects the goal to business success Engaging men of the company’s dominant nationality Building skill in working across nationality and gender differences (including with your suppliers and search firms) Setting a vision that connects the goal to business success Most companies have a very broad definition of “diversity,” which can make implementing change and measuring progress a challenge. What will success look like? What indicators will you track? Where is the business imperative? They tend to frame gender as one diversity dimension among many. This makes it near-impossible to invest the time and management focus needed to effectively adapt to a gender balanced workforce and customer base. (And research has shown that different approaches are often needed to foster gender balance, as opposed to other diversity dimensions.) DSM prioritized two diversity dimensions, transparently and strategically: the nationality and gender balance of their management. “We looked at all the research,” Sijbesma explains, “and it was clear that these were the two factors that had, by far, the biggest impact on the bottom line.” DSM moved through three phases. First, they were an entirely Dutch and male company. The senior leadership team of 35 was dominated by Dutch men. They started by relocating some key positions around the world, staffed by other nationalities. The second phase was to attract and develop more local and international people. “Now,” says Sijbesma, “we are in the third phase, where we are moving international people across geographies for their development and the company’s benefit.” The top team of 35 is now 60% non-Dutch and includes 7 women. “Not good enough,” he admits, “but incredibly different. And totally transformational.” To support the balancing of nationalities in leadership, DSM moved away from having a single global headquarters in Heerlen, and based different functions in each region (Singapore, Shanghai, New Jersey, and Basel). “This means that instead of having all the top 50 executives in the Netherlands (which isn’t very attractive to top talent from China, the U.S., or Brazil), we have global hubs that offer interesting jobs in a variety of locations.” Engage men of the company’s dominant nationality Many companies, especially in America, are well-meaningly focused on empowering “out-of-power” or under-represented groups. This has led to the spread of affinity groups, or employee resource groups (ERGs). These have the unintended consequence of minimizing these groups’ overall significance, separating them from each other, and keeping them away from real networks of influence. Companies then wonder why they aren’t making more progress on their diversity KPIs despite lots of noise and activity devoted to the challenge. Related Video How Different Countries Expect Women to Show Authority In some cultures, there's a big gap between male and female leaders. Save Share See More Videos > See More Videos > An approach that often yields better results, in my experience, is helping today’s in-group members become ready and accountable for hiring and promoting people who may not look like them, but who do look like the company’s customers. It’s good for the business, but it’s not easy. CEOs need to be ready to explain the necessity of the shift. That’s what Sijbesma tried to do. In the year 2000, DSM’s top 350 executives were 75% Dutch and more than 99% male. Today, it’s 40% Dutch and 83% male (it’s not uncommon for companies to make faster progress on nationality than gender). Sijbesma aims to bring the male ratio down by 2% per year and down below 75% by 2025. He is prioritizing sustainability and credibility more than speed. He admits it has not always been an easy ride. “The reaction of some of the Dutch guys is to loudly claim that if you are male and Dutch you no longer have a future at DSM. I remind them that I am male and Dutch, and that we share an obligation to change the profile of our management to guarantee our company’s continued success in the future. I ask them to help me build that group of people, because it’s better for the business.” Build skill in working across nationality and gender differences (including with your suppliers and search firms) Companies are starting to acknowledge the pervasiveness of bias, as the proliferation of unconscious bias training for middle managers demonstrates. While these are laudable efforts, the research shows they can backfire. People are tired of what they see as “identity politics” and most don’t appreciate being called biased. Moreover, emphasizing that “everyone is a little bit biased,” as trainings often do, can make bias seem understandable and acceptable, and inadvertently reinforce negative stereotypes. A subtle but impactful alternative is to make “managing across differences” a vaunted leadership skill. If you visibly promote and reward those who do it well, actions speak louder than unmet gender targets. For Sijbesma, the crucial issue is to build awareness of dominance – and its impact – among the dominant group. “You have no idea of the culture you have built in your organization until you listen to the people who are not a natural part of it.” The company mainstreamed both gender and culture training into all its leadership development programs. “There is no way for companies to become truly global players if their leaders haven’t learned the 21st century leadership skill of inclusion. If we want to draw on the world’s best talent, and connect deeply with customers across hugely disparate cultures, we need to teach them.” The same education may be necessary outside the company, with suppliers and search firms. DSM found it had to lean very hard on search firms used to find fresh blood for its top team. “Search firms want to close the deal as fast as they can, so they propose all the usual candidates that they have in their networks. I had to really insist that I was looking for other nationalities and women. Some of those searches, like the one, three years ago, for our CFO, took twice as long as normal. I was absolutely determined. I took a lot of heat, both from the search firms and my own colleagues. But you need to know what you want, and what the priorities really are – and then accept some short-term discomfort. Our CFO is now a great asset to the company, in many aspects.” The pieces all fit together: a compelling vision helps get your core constituency on board, and training them in inclusion skills helps them execute on it. “People are not discriminatory,” says Sijbesma, “sometimes they are simply unaware and unskilled.” He has learned that the “myopia of dominant groups to see their standards as normal” is a key obstacle. Building awareness, engagement and skills has allowed him to build balance, fuel innovation and stimulate growth. He’s celebrating, and DSM is flourishing. In 115 years of existence, its profits have never been so high, nor its share price so strong.

04 июля, 07:16

China 2017 - Shaping Globalization and Inclusive Growth

http://www.weforum.org/ The audio of this session is the original language as used by the panellists, alternating between Mandarin Chinese and English. China is taking the lead in globalization with the One Belt, One Road initiative and proposals for new trade agreements. How can business champion a new chapter of global and inclusive growth? This session was developed in partnership with CCTV. - Huang Yiping, Professor, National School of Development, Peking University, People's Republic of China - B. G. Srinivas, Executive Director and Group Managing Director, PCCW, Hong Kong SAR - Timothy P. Stratford, Managing Partner, Beijing, Covington & Burling, People's Republic of China - Feike Sybesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands - Wang Hong, Executive Vice-President, China Merchants Group, Hong Kong SAR Moderated by - Li Sixuan, Anchor, China Central Television (CCTV), People's Republic of China

29 июня, 19:07

China 2017 - Climate's Next Frontier

http://www.weforum.org/ The climate-smart investment opportunity is estimated at nearly $23 trillion in emerging markets between now and 2030. Following the US pull-out from the climate agreement, what leadership is needed to seize this opportunity? Speakers: - Victor L. L. Chu, Chairman and Chief Executive Officer, First Eastern Investment Group, Hong Kong SAR - Joaquim Levy, Chief Financial Officer, World Bank Group; Managing Director, World Bank, Washington DC - Feike Sybesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands - Changhua Wu, Director, China and Asia, Office of Jeremy Rifkin, People's Republic of China - Zhang Xinsheng, President, International Union for Conservation of Nature (IUCN), Beijing Moderated by: - Bronwyn Nielsen, Editor-in-Chief and Executive Director, CNBC Africa, South Africa

31 мая, 20:28

U.S. Business Leaders Want to Stay in the Paris Climate Accord

According to reports, President Trump is expected to pull the U.S. out of the Paris climate agreement. This is a horrible decision for business, the United States, and humanity. In this moment, running through the details of the agreement itself, which commits nearly every country in the world to significant energy and carbon reductions, is not vital. Nor is what we could analyze — from what will actually change in how the U.S. uses energy or emits carbon if the agreement is abandoned (it’s not a straightforward discussion by any means) to what states, cities, and citizens can do as a result. But the key point I want to make here is that the business community does not want to leave the Paris climate agreement. Let me repeat: Even though Trump and his team keep telling everyone that climate action is somehow bad for the economy, most companies don’t agree with that assessment. On May 10, in an attempt to influence the president’s thinking, 30 CEOs wrote an open letter to Trump, taking out a full-page ad in the Wall Street Journal. The opening reads, “We are writing to express our strong support for the U.S. remaining in the Paris Climate Agreement.” I won’t reprint the whole letter here, but please read it. It is, however, worth taking a moment to look at the companies whose CEOs made their views known: 3M Company Allianz SE Bank of America Corp. BROAD Group Campbell Soup Company Cargill Inc. Citigroup Inc. The Coca-Cola Company Corning Incorporated Cummins Inc. Dana Incorporated The Dow Chemical Company E.I. DuPont de Nemours & Company General Electric The Goldman Sachs Group, Inc. Harris Corporation Johnson & Johnson JP Morgan Chase Kering Morgan Stanley Newell Brands Inc. Pacific Gas and Electric Company Procter & Gamble Company Royal DSM Salesforce Solvay Tesla Inc. Unilever Virgin Group The Walt Disney Company This is not a tree-hugger group. And it’s not a list of usual suspects from consumer-facing brands that may want to impress consumers or seem like they don’t have a huge carbon footprint. Nor is it a list that makes you think the money men want out of Paris. Heavy industrials are here. The biggest banks are here, and in other communications, too — see the letter to G7 leaders from hundreds of institutional investors, representing $17 trillion in assets. Related Video Whiteboard Session: The Business Case for Sustainability Account for the intangibles. Save Share See More Videos > See More Videos > Finally, I can say confidently, the list does not even remotely cover all the companies that feel this way. The CEO of Dow corralled fellow CEOs over just a couple of days to get these signatories. Many more agree but couldn’t move that fast on the letter, and many other executives have made their feelings known through back channels to Trump and his team. Public statements of support for the Paris agreement have even come in from the CEO of Exxon. Yes, Exxon. And just look at the hundreds of companies that have already committed to science-based carbon reduction goals and 100% renewable energy. And yet the president seems to be ignoring this clear message coming from our titans of industry. He has claimed for a long time that he wants to put America first. But by withdrawing we would join a short list of UN member states that have not signed the agreement: Nicaragua and Syria. That’s it. The U.S. cannot lead the world in any dimension if it abdicates responsibility and leadership for the greatest challenge facing humanity.

04 мая, 20:09

South Africa 2017 - Africa's Food Paradox

http://www.weforum.org/ Africa is facing food shortages arising from droughts in Southern and Eastern Africa, locally produced food competing with cheap food imports in urban supermarkets, and the average farmer is 65 years old. How can African economies move beyond subsistence rain-dependent agriculture to accelerate food production that meets growing demand both at home and abroad? Dimensions to be addressed: - Integrating local farmers into local supply chains - Engaging youth in agro-entrepreneurship - Boosting local manufacturing to compete with global brands - William Asiko, Executive Director, Grow Africa, South Africa - Mamadou Biteye, Managing Director, Africa Regional Office, Rockefeller Foundation, Kenya - Mauricio Muller Adade, President, Latin America, Royal DSM, Brazil - Benedicte Mundele Kuvuna, Co-Founder, Surprise Tropicale, Italy; Global Shaper - Birju Pradipkumar Patel, Deputy Chief Executive Officer, Export Trading Group (ETG), South Africa Moderated by - Monica Katebe Musonda, Founder and Chief Executive Officer, Java Foods, Zambia; Young Global Leader

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07 апреля, 21:19

Argentina 2017 - Latin Americas Energy Transition

http://www.weforum.org/ How can a new mix between hydrocarbons and renewables underpin regional development? Dimensions to be addressed: - Technologies to manage growing energy demand and climate change - Impact on fiscal revenue and competitiveness - Policies to fast-track implementation and foster regional integration · Juan Jose Aranguren, Minister of Energy and Mining of Argentina · Alejandro P. Bulgheroni, Chairman, Bridas Corporation, Argentina · Luca D'Agnese, Head, Latin America Region, Enel, Italy · Mauricio Muller Adade, President, Human Nutrition & Health (HNH), DSM Nutrition, Royal DSM, Brazil Moderated by · Caroline Stauffer, Southern Latin America Bureau Chief, Thomson Reuters, Argentina

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13 октября 2016, 13:21

The pricing of carbon is inevitable, best to plan ahead

At Climate Week New York we launched our fourth annual global carbon pricing report. Each year we ask major multinationals who disclose to their investors and business customers through CDP if they are applying an internal price on carbon, and how they are using this to better manage climate-related risk and reduce carbon emissions. As our report this year highlights, investors are asking companies to disclose this information to help them ascertain risks in their portfolios: a company using an internal price on carbon provides investors with some comfort that they are prudently planning for a world of carbon regulations. What are companies like Shell, General Motors, Goldman Sachs and Microsoft doing to manage climate risk? Our carbon pricing report found that more than 1,200 companies - 23% more than last year - are now using an internal carbon price or planning to adopt one. The use of an internal carbon price by companies is a fairly new phenomenon. Four years ago just 35 companies disclosed they were using one, though it appears to be heading towards a new norm of behavior to manage risk in capital markets. Given this rapid adoption it is not surprising that companies are using this tool in a range of different ways: from testing business strategies against future scenarios, such as Shell; as a real investment hurdle like ENGIE; and even to drive investment towards climate-aligned corporate goals, be it an emissions reduction target, an energy related challenge, or the creation of a new low-carbon product line, like Microsoft. Close to 150 companies are embedding a carbon price deep into their corporate strategy. These companies are using it to deliver on climate targets, whether it be an emissions or energy related target or to help foster a new line of low-carbon products and services. They report that it helps by providing an incentive to reallocate resources to emission reduction investments, can be used for creating a business case for R&D investments and, by assigning a financial value to both emitted and avoided emissions, it helps reveal hidden risks and opportunities. Over 40 major multi-national companies with a combined market cap of US$1.5 trillion have disclosed tangible business benefits to us - from shifting investments towards energy efficiency measures, low-carbon initiatives, energy purchases and the development of new low-carbon product offerings. A very positive sign given this tool is relatively nascent. Companies in the energy and utility sectors were most heavily represented in the results. Others include technology companies like Microsoft, or the Swiss Pharmaceutical Novartis and carmakers such as Nissan and General Motors. The number of companies disclosing they are in the process of adopting an internal price is increasing. There has been a considerable jump especially in Mexico, Brazil, India and Japan, as well as in the US. What is driving the race to price carbon? There are a number of drivers, including the growing momentum post the adoption of the Paris Agreement - which we expect to accelerate with its forthcoming ratification - and China's impending carbon market. Novartis disclosed it has adopted a US$100 a metric ton carbon price to help it identify projects that will most cost effectively reduce greenhouse gas emissions. Saint-Gobain, SUEZ and Anglo American all use an internal carbon price to stimulate R&D into low carbon technologies such as fuel cells and construction materials. Some of the businesses we talk to set a carbon price to inform future investment decisions. The French utility Engie disclosed it had decided to abandon new coal projects in 2015 in a belief that a carbon price will steadily be established across the world, and that coal fired plants will be adversely affected in the future. Societe Generale has saved €13 million on overheads by pricing carbon over a three-year period. TD Bank and Royal DSM are now pricing internally to underscore strategic shifts towards low-carbon operations and products. Investors are also driving the carbon pricing agenda. They want to understand the inherent risks they are running in their portfolios in light of the changing landscape and are keen to ensure businesses are responding to a low carbon future. Jack Ehnes, CEO at CalSTRS takes climate change very seriously and is using CDP data to hold companies accountable to disclosing and managing climate risk and demonstrating they are preparing for a low-carbon economy. The Taskforce on Climate-related Financial Disclosures (TCFD), established by Mark Carney and chaired by Mike Bloomberg, is considering recommending companies disclose forward looking risk against scenarios. Doing so against future deemed carbon prices is clearly one such way investors can assess potential future exposure. However some 500 companies in high emitting sectors still do not have or are not considering a carbon price. We believe these companies are potentially at risk from having a too short business planning horizon given how fast climate change issues are moving. Some multinationals are starting to lead the way, but this time next year we expect to see carbon pricing be the new normal across markets globally. After all, with China's adoption of a nationwide carbon pricing scheme expected before the end of 2017, every major corporation and investor will have a carbon price somewhere in their supply chain or portfolio. The question is whether they understand how they will be exposed to this and are they prepared? Read the full CDP 2016 Carbon pricing report here. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

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08 июля 2016, 01:19

China 2016 - The Impact of the Fourth Industrial Revolution

http://www.weforum.org/ From AI to robotics, the commercialization of emerging technologies is redefining industries and reshaping societal norms, and yet productivity statistics tell a story of economic stagnation. How can economies realize the growth and development potential of the Fourth Industrial Revolution? Speakers: -Navdeep Bains, Minister of Innovation, Science and Economic Development of Canada. -Marc R. Benioff, Chairman and Chief Executive Officer, Salesforce, USA. -R. May Lee, Dean, School of Entrepreneurship and Management, ShanghaiTech, People's Republic of China. -Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands. Chaired by W. Lee Howell, Head of Global Programming, Member of the Managing Board, World Economic Forum.

08 июля 2016, 00:55

China 2016 - Implementing the Climate Deal

http://www.weforum.org/ The historic COP21 agreement on climate change aims to keep global warming from exceeding 2C compared to pre-industrial levels. How are countries and companies translating their commitment into action? Dimensions to be addressed: - Policies for climate-compatible growth - New climate finance strategies and mechanisms - Business and tech approaches to green growth Speakers: -Ted Chu, Chief Economist, International Finance Corporation, Washington DC. -Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands. -Sandra Wu Wen-Hsiu, Chairperson and Chief Executive Officer, Kokusai Kogyo, Japan. -Zhang Xinsheng, President, International Union for Conservation of Nature (IUCN), People's Republic of China. -Zou Ji, Deputy Director-General, National Center for Climate Change Strategy and International Cooperation (NCSC), People's Republic of China. Moderated by Qi Ye, Director, Brookings-Tsinghua Center for Public Policy, People's Republic of China.

08 июля 2016, 00:39

China 2016 - Co-Chair Roundtable: Pioneering the Circular Economy

http://www.weforum.org/ Join a conversation with Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board of Royal DSM, on pioneering systems change towards a circular economy. Interviewed by Vijay Vaitheeswaran, Shanghai Bureau Chief, The Economist, People's Republic of China. With Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands.

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29 июня 2016, 23:11

Как избавить топ-менеджеров от перегрузки на работе

Хью Уэлш из североамериканского отделения нидерландской компании Royal DSM – типичный образец современного перегруженного топ-менеджера. Он занимает в компании сразу несколько позиций, одна из которых – главный советник; прямо или косвенно ему подчиняется более 100 человек. Рабочий график Уэлша настолько плотный, что деловые встречи часто приходится назначать на воскресенья, а сотрудники с утра выстраиваются перед приемной босса в очередь ради минутной встречи с ним. 50-летний Уэлш признается, что совершенно измотан: «Я просто не могу быть во всех этих местах одновременно».

17 июня 2016, 21:43

Colombia 2016 - A New Growth Model for Latin America

http://www.weforum.org/ What should Latin America's growth model look like in the "new normal"? Dimensions to be addressed: - Developing a coherent macroeconomic vision - Strengthening emerging high-potential sectors - Accelerating industrial transition to a post-commodity ecosystem This session was developed in partnership with CNN en Español. - Rosario Cordoba, President, Consejo Privado de Competitividad, Colombia - Ricardo Haneine Haua, Partner and Managing Director, Hispano-America, A.T. Kearney, Mexico - Andrés Velasco, Professor of International Practice in International Development, Columbia Global Centers Latin America, Chile; Meta-Council on Inclusive Growth - Hugh Welsh, President, DSM, North America, Royal DSM, USA Moderated by - Gabriela Frias, Anchor, CNN en Español, USA

03 июня 2016, 18:48

CO2 Pricing: Business Reacts to Credible Expectations

Business reacts to credible expectations, not brave declarations. We cannot lose the momentum and credibility of collective will. Immediately after Paris and COP21, we heard disappointment around the fact that carbon pricing didn't feature as strongly in the text of the agreement as it could have, despite numerous CEOs urging for a decision in this field and business asking for a price signal. A clear, credible and meaningful signal able to trigger a change in behavior of the so-called mainstream business was the desire of the most advanced leaders. Few people understood that the UNFCCC process had very little chance to produce a clear statement on this particular topic. In the end, false expectations were created, which led to a disappointment that could have been easily avoided. Businesses asked for a price not because they like the idea of increasing costs, but because they know the current price system is not sustainable and they also know this price will come, but they do not know how high, when, and in which form. They want a price above all because they want to reduce uncertainties. Then came the Carbon Pricing Leadership Coalition under the patronage of the World Bank, re-energised in Paris with the blessing of impressive godfathers; the UN Secretary General, the President of the World Bank, the Managing Director of International Monetary Fund, the Secretary General of OECD, credible leadership in the field of 'big business' from the Chairman and CEO of Royal DSM and all of this being co-chaired by the President of the COP. Finance Ministers also joined the party, bringing their credibility to the table. Some critics commented they came with the wrong motivations, seeing it as an easy way to increase the potential of their tax base, but even if this was the case, it could be easily corrected or mitigated. This Coalition comes together with a movement where we are seeing organizations, countries and individuals both creating and reacting to an expectation of a price on carbon, and in a way making it a self-fulfilling prophecy as the market is shifting in line with that. We are now seeing impressive growth in the area of the so-called "shadow carbon price". At the end of last year CDP reported on 400+ companies that are using a price for carbon now, with almost 600 more planning to do so in the next two years. Impressive numbers considering there were just tens a few years ago. All of these companies are anticipating that the price and the real cost will come anyway. So they are using a shadow price to start orientating their portfolio of research projects and investments in the right direction. Again, they are anticipating this change instead of waiting for the confirmation, as they want to be the first movers and avoid being stuck with stranded assets. Some are even insisting on a high level of price able to change behaviour internally. Countries are also moving to organize their local markets, which will be soon interconnected. China with up to one billion people who will be impacted by carbon price is certainly the most obvious example of a potential massive transformative move. Although not explicitly linked to a price on carbon, we are starting to see a change of thinking from fossil fuel producing countries too. Some are sceptical of the reasons, but Saudi Arabia planning to sell state oil assets marks a huge shift in how oil producing countries are thinking about diversifying and preparing for a world beyond oil and towards net zero emissions. They are also changing their own energy mix, investing in solar at a scale that will cover all their own needs and create room for exports. These big movements aren't happening because of a new system that is already in place, but because of a change of thinking and the credible expectation of a new system arriving. This lends itself well to the idea of a virtuous circle; expectation feeding reality, which then in turn feeds expectation. This virtuous circle will drive the change we need to make expectations into fact. This is why the Carbon Pricing Leadership Coalition has such a huge responsibility moving this idea forward, creating an expectation of collaboration across borders, across sectors, sharing information, know-how and capacity, to build the most economically efficient tools for decarbonisation into every nation's climate plan as soon as possible. The Coalition and other initiatives should feed this movement and maintain the credibility of a coming price on carbon. Business acts when it anticipates a credible vision of a new system, not because of facts already proven, which has often... proven too late. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

05 мая 2016, 11:42

The Transition to Renewable Energy Is at the Tipping Point -- But We Need to Help It Go Faster

The world is approaching a tipping point, with renewable energy taking over from the fossil fuel industry. We now need to come together to give it a last push to help deliver the zero-carbon economy that world leaders agreed to at the recent UN climate talks in Paris (COP21). This is what We Mean Business will be discussing at the Climate Action 2016 Summit in Washington, D.C. this week, with 700 global leaders from businesses, national and sub-national governments, academia and civil society. The evidence that the high-carbon energy industry is struggling is mounting. In the last few months, we have seen two of the world's largest energy companies, Peabody Energy and Exxon, facing financial troubles. Peabody, a privately-owned coal producer, filed for bankruptcy and Exxon's credit rating was downgraded by Standard & Poor's. The picture is rather different on the other end of the energy sector. For the first time in the history of the industrialized world, global investment in solar, wind, and other renewable energy sources, including through the business-led RE100 pledge, has overtaken that of coal and gas-fired electricity generation. This record has largely been due to emerging economies investing in renewables, proving that the entire world is now seeing the benefits of switching to renewable power. These stories sound a clear warning sign to the fossil fuel industry - that if they are to save millions of jobs, they must adapt to the inevitable energy transition and be innovative in changing their business models. This can be both profitable as well as good for the planet. Royal DSM, for instance, is a company in a high-emitting sector that is actively aligning its business with climate science and recently reported a strong first quarter. In fact, forward-thinking businesses like Royal DSM and other so-called non-state actors are moving at speed in implementing their pledges, at times leaving policymakers running to catch up. This was demonstrated in the lead up to the Paris Agreement, for example at the Business and Climate Summit (BCS) in Paris last year. Businesses and investors will come together again at the second BCS in London in June to discuss their next steps. Meanwhile, 150 companies have committed to setting their own science-based emission reduction targets (SBTs) to reduce their emissions in line with the Agreement. That means that the time is right for more companies to follow these examples and grab the opportunities available. The International Energy Agency calculates that, together, the national climate plans under the Paris Agreement alone represent a $13.5 trillion market in energy efficiency and low-carbon technologies through to 2030 - and this market is growing faster than the global economy as a whole, particularly given expanding opportunities in developing countries. Last week, Indian Power, Coal, New and Renewable Energy Minister Piyush Goyal and French Environment Minister Ségolène Royal co-hosted an event on the International Solar Alliance, announcing an investment flow of up to $1 trillion into solar. Meanwhile, the World Bank has unveiled its ambitious plan to aid developing countries in fulfilling their COP21 pledges. The Bank will help countries add 30GW of renewable energy and mobilize $25 billion in private financing to clean energy over the next four years. This goes a long way to overcoming the financial challenges facing the transition to renewable energy but more will need to be done. The next few years will be crucial to tackle some of these and other important challenges. The Climate Action Summit will discuss how we can work together to achieve this. For example, despite the huge growth in this area, investment in clean energy in the developing world is still challenged by the structural barriers of the financial services market. This results in limited instruments and capital available. One area where this is most apparent is in small island states, where imported diesel is the most commonly-used fuel to generate power. Clearly, this is an economic as well as a climate absurdity, given the abundance of solar and wind resources at their disposal. We expect to see some big initiatives bundling solutions for these countries in the next 18 months. With the energy transition gaining pace and leaving fossil-fuel industries behind, the Climate Action 2016 Summit will see leaders come together to look ahead at the opportunities and challenges of a successful energy transition. We Mean Business will be there to help keep up the momentum - we hope many more will join the conversation. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

14 апреля 2016, 21:21

Carbon Pricing: An Inevitable Opportunity

Regarding climate change, the global community has excelled in procrastination. But time is running out. The scientific evidence is mounting, and the impact of severe climate changes is more tangible than ever. It is time for the global community to take responsibility and lead the way forward to implement a price on carbon. The COP21 Paris Agreement brought us closer to a future of low-fossil-carbon prosperity. A future, in which those who emitted the least greenhouse gasses won't have to face droughts, floods, and other devastating effects, resulting in poverty, migration and conflicts. UN Secretary General Ban Ki-Moon said after COP21: "What was once unthinkable is now unstoppable". When the Paris agreement is formalized at a United Nations signing ceremony on 22 April, Earth Day, it is time to reflect and realize that the current plans are still not enough to limit the temperature rise to 1.5 to 2 degrees Celsius. Carbon pricing is inevitable to reach truly this ambitious goal for the following three reasons. First, carbon pricing is a critical instrument to unlock the private capital needed for the transition from the fossil fuel to the (bio)renewable age. Putting a price on carbon makes alternative energy solutions, such as solar, the wind and advanced biofuels more competitive while creating opportunities to pursue additional low-fossil-carbon alternatives and charging the -- currently cheap -- fossil resources the right pollution price. Second, by putting a meaningful price on carbon, the current generation can take financial responsibility for its carbon footprint and stop treating the planet like an undepletable bank account and transfer the bill to the next generation. The gravest threat to humanity since the end of the cold war is now also recognized by central banks. Mark Carney, Governor of the Bank of England, recently called climate change (referring to the tragedy of the commons) a "tragedy of the horizons" because climate impacts stretch beyond the traditional horizons of business and governments. In The Netherlands, the Dutch Central Bank concluded that a radical transition away from fossil fuels is urgently needed. Third, the political momentum for carbon pricing is unparalleled. Around 40 countries and more than 20 cities, states and provinces are already realizing mechanisms to tax or trade carbon or are planning to do so. Some, such as Quebec and California, have already linked their trading schemes. Already more than 400 companies are considering or already using an internal carbon price. At Royal DSM, we apply an internal carbon price of €50 per ton CO2 equivalent when reviewing large investments. I call on business to do the same: it will make your business more future proof. Facilitated by the World Economic Forum, around 80 CEOs voiced their support for a meaningful carbon price in the run-up to COP21. The current low oil price creates the right moment to introduce a price on carbon. Today's reality is, many governments around the world still have direct or indirect fossil fuel subsidies. And in many jurisdictions, the carbon price is not high enough for low-carbon innovations to thrive. By sharing best practices, governments can learn from each other. To help speed up this collaborative process, I feel honored to co-chair with Ségolène Royal, Minister of Ecology, Sustainable Development and Energy of France, the High-Level Assembly of the Carbon Pricing Leadership Coalition (CPLC) facilitated by the World Bank, which is convening for the first time (15 April) in Washington DC. This coalition brings together leaders from across government, the private sector, and civil society to share the experience of working with carbon pricing and creating the most effective carbon pricing systems and policies. The CPLC's long-term objective is for carbon pricing to be applied throughout the global economy. In addition to facilitating leadership dialogues, the CPLC will also mobilize business support to put an internal price on carbon. Accelerated implementation of a meaningful carbon price across the globe can turn the notion of Tragedy of the Commons into an Opportunity of the Commons and create low-carbon prosperity for all. It not only makes business sense: our children and their children will thank us for finally stepping up. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

14 апреля 2016, 21:21

Carbon Pricing: An Inevitable Opportunity

Regarding climate change, the global community has excelled in procrastination. But time is running out. The scientific evidence is mounting, and the impact of severe climate changes is more tangible than ever. It is time for the global community to take responsibility and lead the way forward to implement a price on carbon. The COP21 Paris Agreement brought us closer to a future of low-fossil-carbon prosperity. A future, in which those who emitted the least greenhouse gasses won't have to face droughts, floods, and other devastating effects, resulting in poverty, migration and conflicts. UN Secretary General Ban Ki-Moon said after COP21: "What was once unthinkable is now unstoppable". When the Paris agreement is formalized at a United Nations signing ceremony on 22 April, Earth Day, it is time to reflect and realize that the current plans are still not enough to limit the temperature rise to 1.5 to 2 degrees Celsius. Carbon pricing is inevitable to reach truly this ambitious goal for the following three reasons. First, carbon pricing is a critical instrument to unlock the private capital needed for the transition from the fossil fuel to the (bio)renewable age. Putting a price on carbon makes alternative energy solutions, such as solar, the wind and advanced biofuels more competitive while creating opportunities to pursue additional low-fossil-carbon alternatives and charging the -- currently cheap -- fossil resources the right pollution price. Second, by putting a meaningful price on carbon, the current generation can take financial responsibility for its carbon footprint and stop treating the planet like an undepletable bank account and transfer the bill to the next generation. The gravest threat to humanity since the end of the cold war is now also recognized by central banks. Mark Carney, Governor of the Bank of England, recently called climate change (referring to the tragedy of the commons) a "tragedy of the horizons" because climate impacts stretch beyond the traditional horizons of business and governments. In The Netherlands, the Dutch Central Bank concluded that a radical transition away from fossil fuels is urgently needed. Third, the political momentum for carbon pricing is unparalleled. Around 40 countries and more than 20 cities, states and provinces are already realizing mechanisms to tax or trade carbon or are planning to do so. Some, such as Quebec and California, have already linked their trading schemes. Already more than 400 companies are considering or already using an internal carbon price. At Royal DSM, we apply an internal carbon price of €50 per ton CO2 equivalent when reviewing large investments. I call on business to do the same: it will make your business more future proof. Facilitated by the World Economic Forum, around 80 CEOs voiced their support for a meaningful carbon price in the run-up to COP21. The current low oil price creates the right moment to introduce a price on carbon. Today's reality is, many governments around the world still have direct or indirect fossil fuel subsidies. And in many jurisdictions, the carbon price is not high enough for low-carbon innovations to thrive. By sharing best practices, governments can learn from each other. To help speed up this collaborative process, I feel honored to co-chair with Ségolène Royal, Minister of Ecology, Sustainable Development and Energy of France, the High-Level Assembly of the Carbon Pricing Leadership Coalition (CPLC) facilitated by the World Bank, which is convening for the first time (15 April) in Washington DC. This coalition brings together leaders from across government, the private sector, and civil society to share the experience of working with carbon pricing and creating the most effective carbon pricing systems and policies. The CPLC's long-term objective is for carbon pricing to be applied throughout the global economy. In addition to facilitating leadership dialogues, the CPLC will also mobilize business support to put an internal price on carbon. Accelerated implementation of a meaningful carbon price across the globe can turn the notion of Tragedy of the Commons into an Opportunity of the Commons and create low-carbon prosperity for all. It not only makes business sense: our children and their children will thank us for finally stepping up. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

15 марта 2016, 22:49

5 Things Every Company Must Do to be a Social Innovator

The World Economic Forum's Global Agenda Council on Social innovation defines social innovation as "the application of innovative, practical, sustainable, market-based approaches to benefit society in general, and low-income or under-served populations in particular." Traditionally associated with social entrepreneurs, this tool is increasingly being adopted by business. This is a trend to be welcomed, supported and replicated as companies -- big or small, multinational or national -- can contribute to taking the practice of social innovation to a significantly larger scale. And the world needs solutions at scale to tackle key societal challenges of our age, as Zia Khan, VP of Initiatives and Strategy at The Rockefeller Foundation, explains in this video. While philanthropy, social responsibility and corporate governance all already play a role, we will probably see more powerful contributions when companies embed social innovation into their core business strategies and operations. For the World Economic Forum's new report on Social Innovation, we spoke to over 30 companies about their experiences of pursuing such initiatives within their business, and below are 5 key lessons: 1. Identify how social innovation can create business value For companies, social innovation is not just a good thing to do. There is a business case for pursuing social innovation. Our interviews revealed a number of measurable business benefits -- reduced costs, increased profits, strengthened supply chains, more innovation, new revenues, legitimised license to operate. For some companies, it is a tool to respond to risks that will affect their business in the visible future. For example, as experts predict a shortage of cocoa by the year 2020, many chocolate manufacturers are working with social enterprises and NGOs to make cocoa farming more economically attractive to farmers, including smallholders. For others, it is a "long tail" investment in developing business with future consumers, including low income populations currently not served by their products or services. Micro-insurance products, LED lamps, micro-nutrient fortified food products, cashless payment systems, affordable health devices -- companies are exploring a range of innovation opportunities. Social innovation can also be a means to build relationships with local governments or strengthen their "license to operate" in society. While specific opportunities and benefits will depend on the company, its core assets and capabilities and the industries and geographies in which it operates, below are some generic opportunities and benefits. View a larger version of this graphic here. Graphic Credit: The World Economic Forum 2. Guide from the top; mobilise across the company Not surprisingly, CEOs and senior leaders are best placed to chart the vision and mobilise a company's resources. In the companies we studied, CEOs played critical roles - integrating social goals into the company's vision and business plans, empowering and challenging their teams to come up with social innovation ideas and supporting intrapreneurs who came to them with great ideas. The support of the CEO and senior management is critical to ensure that social innovation initiatives take centre stage and do not remain "one-off projects", are closely linked to company strategy and are able to mobilise support from across the company. At MasterCard, for instance, when CEO Ajay Banga made financial inclusion a top corporate priority, related targets were included in the company's 10 strategic objectives. The company also made a public commitment to connect an additional 500 million people, including millions of small merchants, to the formal financial system by 2020. As a result, teams around the company started identifying new opportunities to use existing business capabilities to serve financially excluded customer segments. Senior leaders can also lead the way in implementation -- when Royal DSM started its change management work on innovation and sustainability, CEO Feike Sijbesma and other board members assumed key roles in the process as Chairs or Sponsors of internal and external initiatives. 3. Support social innovation "intrapreneurs" "If you are the CFO or HR head of a company, you know exactly who your peer is in another company. If you work on social innovation initiatives that is not the case," said one of our interviewees. Social innovation ideas often struggle to find clear owners within a company. While we did hear stories where individuals were able to turn their ideas into a success, individual efforts can only go so far. Not unlike other business ideas, successful initiatives managed to secure collaboration across the house -- including from business units, innovation and strategy teams and corporate responsibility or corporate affairs teams. The key lesson for companies is to sensitise teams across the house to identify ideas, challenge them to make them viable and business relevant and support them to implement. Development programmes, competitions, awards, internal communication tools, innovation budgets, intrapreneurship workshops can all be tools to support "intrapreneurs." SAB Miller for instance, created the Mackay Awards, an internal recognition for initiatives that grow the business while generating clear social and environmental benefits. Centrica took advantage of an internal talent development program to create a social innovation challenge for its high-potential professionals and subsequently implemented the winning proposal: IGNITE, United Kingdom's first corporate impact fund investing in energy enterprises. IGNITE investees are improving access and lowering energy cost for communities by finding new ways of generating, supplying, using and saving energy. 4. Incubate ideas with patience and rigour In many ways, coming up with social innovation ideas is the easy bit. What's harder is converting them into feasible concepts, prototypes or business models and more importantly, scaling them to a point where the business benefits are clear and measurable. They pose unfamiliar design challenges. They often take longer to get to market and to reach profitability. And often, as recognised by Phillips, they can get stuck in conventional structures and information flows. In 2013, the company found that its Africa sales teams were generating numerous inclusive innovation ideas aimed at marginalized communities including LED lights with solar panels and medical devices for villages with few resources. Though these ideas were passed on to business units, the latter were not picking it up as their existing retailers responded that they would be of no interest to their existing higher-income customers. In 2014, the company created a new structure - the Africa Innovation Hub, which went to market with a "pay-as-you-go" model that works outside of its existing distribution chain and rents out LED lights to low-income households for a daily fee (thus helping customers who struggle with a large upfront payment). Like in the case of Phillips, social innovation initiatives may need new structures, specialised funding to support experimentation, and performance thresholds and timeframes that may be different from other ideas. At the same time, if they are seen as too "special", it will be harder for executives to understand, implement and improve as part of their day-to-day business processes. It is important that the idea is relevant to front-line businesses and has the future potential to achieve performance metrics that are desired by business units. Experiment, evaluate performance through tailored metrics and do not hesitate to stop the ones that don't show potential so you can spend more time supporting the ones that do. 5. Work with others, especially those closer to social issues Almost every company we studied found partners to work with -- civil society organisations, social entrepreneurs, academic organisations and local experts. Partners can bring in complementary skillsets, trusted relationships and a sense of what works and doesn't in that local context. In 2014, Merck developed a new, reliable, easy-to-use method to help with the clinical management of HIV patients in partnership with the University of Yaoundé in Cameroon. The partners ran field tests for two years until the system could withstand extreme heat and humidity, was compatible with variable power systems, and was impeccably easy to use -- product specifications that presented new challenges for Merck's product developers. Companies should invest time to be close to the customers and partners when pursuing social innovation. Foster a culture of ongoing interactions with people from other sectors - the recently launched Sustainable Development Goals (SDGs) provide an opportune framework for companies to explore such partnerships. Social innovation, especially in an established company, may call for significant change management. While the logic, capabilities or processes needed may not be very different from "business as usual," using them with the explicit intent to solve a societal challenge is. Read full report and cases here. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.