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Business Education in Emerging Market Economies Integrating Environmental Issues for Business Success Pavan Sukhdev McCluskey Fellow 2011, Yale University Founder-CEO, GIST Advisory
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Towards “Green Economy” ? Source : UNEP – GREEN ECONOMY INITIATIVE  “ A  Green Economy  can be defined as one that results in improved human well-being and social equity, while  significantly  reducing environmental risks and ecological scarcities.” Wealth + Jobs + Poverty -
Green Economy : Sectoral Success Stories ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source : UNEP – GREEN ECONOMY INITIATIVE
Green Economy : reduces ecological scarcities…    Source : UNEP – GREEN ECONOMY INITIATIVE
UNEP – GREEN ECONOMY INITIATIVE  ,[object Object],[object Object],[object Object],[object Object],[object Object],Agriculture : Challenges & Opportunities UNEP – GREEN ECONOMY INITIATIVE
Example : Low-Cost Storage  (Metal Silos) ,[object Object],[object Object],[object Object],[object Object],[object Object]
UNEP – GREEN ECONOMY INITIATIVE  UNEP – GREEN ECONOMY INITIATIVE  Source:  United Nations Human Development Index Green Economy: Two Pathways Meeting the dual goals of sustainability  –  High human development and low ecological impact Source :  WWF Living Planet Report 2006
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[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Growing Cost Management Opportunities..
The “Cost Management” Case  ,[object Object],higher level of ambition requires wide use of economic instruments, incl price of carbon  > US$150 per ton CO2 by 2050? Countries Sector Energy-efficiency initiatives ROI Payback CO 2  savings Bangladesh Steel Reparation of leaks and insulation of pipelines 260% 3.5 months 137 tons/year China Chemicals Installation of a heat recovery system to recover heat for a CHP 96% 7 months 51,137 tons/ year Ghana Textiles  Installation of hi-tech de-scaling equipment for the boiler and steam pipes. Water conservation measures resulted in comparable savings.  159% 4 months Not available  Mongolia Cement Improvements in the dust control system (filter bags) using new electric motors. 552% 2 months 11,007 tons /year
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Growing consumer interest ...
Growing product innovation… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source:  UNEP’s Green Economy Report, “Towards a Green Economy”, (2011).
[object Object],[object Object],[object Object],[object Object],[object Object]
private profits less  subsidies Net of public costs of restoration after 5 yrs private  profits 0 10,000 US$/ha private profits  5,000 If public wealth is included, the “trade-off” choice changes completely….. $584 ha $1220 ha $9632 ha $584 ha -ve  $11,172 ha $12,392 ha Source: Barbier 2007 After adding public benefits from mangroves Environmental impacts :  A local example PRIVATE PROFITS  PUBLIC LOSSES Shrimp Farm Mangroves
Adding up life cycle impacts along a  global value chain….
[object Object],[object Object],[object Object],[object Object],Top 3000 corporations (estimate by TRUCOST for UN-PRI) PRIVATE PROFITS  PUBLIC LOSSES Environmental impacts :  Global Concerns
[object Object],[object Object],Source: Trucost for UNPRI, 2010. PRIVATE PROFITS  PUBLIC LOSSES Environmental  impacts :  Global Concerns
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PUMA : Measuring Environmental Impacts  Along the Supply Chain Source : PPR / PUMA Press Release, May 16 th  2011
PUMA : Measuring Environmental Impacts  Along the Supply Chain Source : PPR / PUMA Press Release, May 16 th  2011
Financial Disclosure is both Desirable  and  Possible  (eg : China, Construction, Forests)  ,[object Object],[object Object],[object Object],[object Object],Source: TEEB for Business, 2010 (Annex 2.1).
Estimate of Annual “Human Capital Creation” by an Indian Software and Consulting Major in 2007
Measuring & Managing Impacts : Leadership … ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank You ! www.gistadvisory.com

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MYRA Business School, Mysore Business education in emerging markets - integrating environmental issues for business success - Pavan Sukhdev

  • 1. Business Education in Emerging Market Economies Integrating Environmental Issues for Business Success Pavan Sukhdev McCluskey Fellow 2011, Yale University Founder-CEO, GIST Advisory
  • 2.
  • 3. Towards “Green Economy” ? Source : UNEP – GREEN ECONOMY INITIATIVE “ A Green Economy can be defined as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.” Wealth + Jobs + Poverty -
  • 4.
  • 5. Green Economy : reduces ecological scarcities…  Source : UNEP – GREEN ECONOMY INITIATIVE
  • 6.
  • 7.
  • 8. UNEP – GREEN ECONOMY INITIATIVE UNEP – GREEN ECONOMY INITIATIVE Source: United Nations Human Development Index Green Economy: Two Pathways Meeting the dual goals of sustainability – High human development and low ecological impact Source : WWF Living Planet Report 2006
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. private profits less subsidies Net of public costs of restoration after 5 yrs private profits 0 10,000 US$/ha private profits 5,000 If public wealth is included, the “trade-off” choice changes completely….. $584 ha $1220 ha $9632 ha $584 ha -ve $11,172 ha $12,392 ha Source: Barbier 2007 After adding public benefits from mangroves Environmental impacts : A local example PRIVATE PROFITS PUBLIC LOSSES Shrimp Farm Mangroves
  • 16. Adding up life cycle impacts along a global value chain….
  • 17.
  • 18.
  • 19.
  • 20. PUMA : Measuring Environmental Impacts Along the Supply Chain Source : PPR / PUMA Press Release, May 16 th 2011
  • 21.
  • 22. Estimate of Annual “Human Capital Creation” by an Indian Software and Consulting Major in 2007
  • 23.
  • 24. Thank You ! www.gistadvisory.com

Notas del editor

  1. T
  2. T
  3. What happens if we do NOT get the valuation right !
  4. Is this “Private Profits / Public Losses “ just a South Thailand Story ?? NO !
  5. Chance to influence Env ministers thinking ahead of these events.