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Biz Strategy

Water & Energy Generation: Conjoint or Fraternal Twins?

March 2, 2021

In last week’s post I looked at energy companies and their trajectory relative to the Paris Climate Agenda. The insights clearly suggested a mixed picture. A clear point of how important it is to decarbonised the way we fuel our economy and global society. But that’s unfortunately not all there is to the energy generation picture! What few people realise: Energy generation requires water. A lot of water. Not just in the energy generating processes, but also in the extraction of the energy source (coal in particular), and/or the making of the necessary equipment. Some insights ... illustrated at the example of China.

Biz Strategy Finance Globalisation

Energy Industry & Carbon Trajectory: A tale of two Trajectories

February 23, 2021

Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. The energy sector is the by far most impactful sector: directly and indirectly our carbon footprint depends on how they fuel our civilisation. The big elephant in the room is of course: How well are badly do energy companies perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I look into these questions. Spoiler Alert: The results are pretty much in line with expectations. Yet: among the innovators, not everyone does perform as well as they probably should ...

Biz Strategy Book Reviews Governance

The Courage to Act: The inside view on creating change

February 16, 2021

Sustainability is usually thought of as an environmental issue. And it is. But but not only. It is in fact a mindset. One that takes courage. This magazine - come out of a creative collaboration - explores three key questions by interviewing personalities in business (Vincent Stanley from Patagonia, Eric Garnier from Choba Choba, Adriana Marina from Hecho x Nosostros, Fergal Smith from the Moy Hill Farm and Andy Middleton from the TYF Group), and by giving space to written creativity of sustainability professionals. The three fundamental questions are: How does ‘creating change’ feel from within? What does it mean to swim against the business mainstream because genuinely the status quo does not work? Where and how does courage come into play?

Biz Strategy Opinions

The Spark: The Resonance of an SME with vision, aspiration, commitment

February 9, 2021

We all interact frequently with SMEs of different types, characters, and offers. Yet there are two types of such businesses. Those where 'the spark' is graspable: Their vision, raison d'etre, motivation, aspiration, commitment. And then those, who at best surf the waves of third party demands. Content to be 'victims' instead of taking the courage to forge their own irons. A never ending fascination.

Biz Strategy Future Tech Labour Opinions

Digitalisation x Sustainability: A match made with pragmatism and opportunity

February 2, 2021

Computer Science and Sustainability/ESG: these two areas of expertise combine increasingly well with every passing month and year. In fact, I am tempted to say that the two worlds of sustainability and digitalisation are surprisingly similar to one another. In a number of ways – not in all, of course! – they overlap more than they differ. And mutually benefit each other. Both areas represent critical skill-sets for boards and senior executives in the current and upcoming decades. This is why I thought I’d take the time to reflect on the overlaps, the synergies, but no doubt also the differences. The key words: systems thinking, automatisation, fraud prevention and authentication, business model distruption, usability, and the Just Transition.

Biz Strategy Definitions Governance

Cognitive Biases on the board and Corporate Climate Change Inertia

January 26, 2021

The influence of decision bias is nothing new when scrutinising corporate governance. And yet: by and large businesses continue to fail to adjust their strategic decision-making processes to become more climate viable. At best they have just barely started on their journey. Why is that? As we look deeper into the corporate discourse on Climate Change, it becomes evident that one of the silent yet crucial culprits behind the climate change inertia lies in the cognitive biases at play in corporate decision making. What are those biases, what do they mean for boards in the context of strategic Climate Change decisions, and what can be done about it?

Biz Strategy Finance Governance

Finance Industry & Carbon Trajectory: Black Holes with a Sparkle of Hope

January 12, 2021

Recently we have learned how the Board of Directors of the 20 largests banks (under)performs when it comes to ESG, and the consequences this has on their future fit investments. This raises evidently the question: How do these 20 banks perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I answer these questions. Afterall: Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. Spoiler Alert: The results are pretty much in line with expectations. ESG-experience on the BoD does make a difference.

Biz Strategy Governance

Distinction-cum-baggage: The board director’s track record

January 5, 2021

A recent Bloomberg article found: of more than 600 directors and executives of the world’s 20 largest banks, only few individuals had experience in renewable or sustainable industries. Far more had ties to polluting industries: At least 73 individuals even have at one time or another held a position with one or more of the biggest corporate emitters of greenhouse gases, including 16 connected to oil or refining companies. The irony: it is precisely the directors’ prior track record and experience, one of the very reasons why they got (s)elected onto the board, that could jeopardise their board’s forward decisions.

Biz Strategy Finance Governance

Dropping the Ball: How sustainability (ESG) competent and capable are boards?

December 22, 2020

Expertise is a key discussion topic when it comes to board composition. Not only during the hiring process, but also when looking at the tenure in and renewal processes of board. According to a recent article by Board Agenda: a number of risks that have raised Directors & Officers concerns, and even litigation. These include [...] climate change and environmental issues; the #MeToo movement and other societal risks and merger objection litigation. Hence the question is: How sustainability (ESG) savvy and capable are boards?

Biz Strategy Finance Globalisation

Apparel Industry & Carbon Trajectory: Throw in the Towel?

December 15, 2020

Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. The big elephant in the room is of course: How do companies perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I answer these questions. Spoiler Alert: Some 'villains' are doing rather well. So well in fact that they are leading the pack.

Biz Strategy Finance

Climate Change & Proxy Vote: A moral issue indeed – for the finance industry

December 8, 2020

From research we know that boards of directors lack skill and expertise when it comes to ESG and Climate Issues. But: certainly the asset owners and investors do see that point, and are worried about boards taking tangible action that would safeguard their assets? This is precisely the question that ShareAction asked in their most recent report. The insights are sobering. Particularly the Big Three asset managers (BlackRock, Vanguard, State Street) have a miserable voting record during AGM season: both, for the number of votes cast, as well as for their stance against most resolution on Climate Change and Human Rights. The good news: it rarely has been so simple to identify Greenwashers. Thanks to publicly available filings about votes cast in AGMs of listed companies.

Biz Strategy Globalisation Governance

Fashion Companies & their Boards of Directors: Rotten Eggs in a Diverse World

December 1, 2020

Diversity and Inclusion is a highly relevant topic not ‘just’ because it is all about equality and justice. But as long as entire parts of our global population remain disenfranchised, and desperate to just survive from day to day, tackling challenges - and in particular Climate Change - that affect all of us, indiscriminately, remains impossible. Boards of Directors set out the "Tone at the Top', also in matter of diversity and inclusion. In fashion companies, what exactly is the tone, the music, that they are creating?

Biz Strategy Governance

When the S**t hits the fan: Building bridges over the stakeholder divide in tough times

November 24, 2020

An NGO comes after you – for the right or the wrong reasons. A journalist publishes an article. The content: inconvenient truths, or equally inconvenient fake news. Or simpler: The staff churn in your company is way above average. And no one seems to know why. The meetings, the clashes, the disagreement, the blaiming that comes with it. Yes, been there, done that. Thankfully, there were times I was not a party in the conflict. Instead I was assigned the (ungrateful?) task of figuring out how to resolve it, build bridges, and ‘get stuff done’. Not just once, but a few times. What initially was of me ‘winging it’, over time – with trial and error – turned into something more structured. Still not perfect – it never will be, there is always room for improvement – but a flight-by-instrument rather than a blind adventure. This post is my first try at illustrating, verbalising, this process.The steps I use, and what their intention is. With the hope of it being as useful to others as it is and was to me.

Biz Strategy Finance Opinions

A ‘system positive’ company. Bullshit bingo or separating the wheat from the chaff?

November 17, 2020

‘System positive’. The latest term I came a cross in the finance world, and which intends to identify business that are particularly well set up to survive the tribulations to be expected in the decades to come. Immediately the cynic in me asks: Another addition to the sustainability bullshit bingo? And yet: the 5 questions proposed for scrutinising companies are very sharp, very relevant and very insightful. They only fall short of one: Will the company thrive within or even thanks to the Doughnut Boundaries?

Biz Strategy Governance Labels

Tools of the trade for the Doughnut business? A status quo comparison

November 10, 2020

In an earlier post I asked: How can business, a business, downscale the Doughnut and make it operational? In this post I look at three tools that praise themselves of being either part, or even all, of the support a business needs on the journey to integrate the Doughnut Economics concepts. Namely: Science-based Targets (SBTs), the B Impact Assessment(BIA), and the Future Fit Business Benchmark (FFBBM). What are their fundamental differences and similarities? Are they indeed a tool to help on the path to keeping within the Doughnut boundaries?

Biz Strategy Circularity Consumer-ism Definitions Finance Materials

Straight Talk: ESG is Not ‘Sustainability’

November 3, 2020

Financial accounting is rather ill suited as well as ill equipped to deal properly with a system that has finite natural resources. Else, why would it not record the environmental losses that come with e.g. extracting bauxite? And what about ESG? Well it turns out, ESG is just more of the same (growth) just in a shade of ‘green’. It is for a reason that the Global Materials Footprint has kept growing in alignment with the much coveted GDP growth. Despite all green efforts. ESG – investing in ‘greener’ tech and businesses – is definitely NOT ‘Sustainability’ as we need it.

Biz Strategy Circularity Opinions

Why bother – with Sustainability? Start with Why

October 27, 2020

Over a decade ago, Simon Sinek pointedly demanded: Start with Why. Targeted at a then rather uninspiring marketing and branding industry, 10 years on is still as valid as ever. Just now, we need to ask businesses: Why are you bothering with investing millions, and thousands of hours into sustainability? Often the answer will be: because we have to. An answer just as uninspiring as the sales slogans Sinek was bashing a decade ago. Because when it comes to Sustainability: Know your genuine Why. Or don't bother.

Biz Strategy Circularity Globalisation Supply Chain

Circularity and Business Models: 2 US reports, many learnings

October 20, 2020

The world, by and large, operates based on land-filling. The only way to improve the situation any time soon is: not to landfill. At all. Or at least as little as possible, and that asap. To that extent, 2 reports on textiles the circular economy have been published, both of which look at the issue from different, and complementary perspectives. What is it that we can learn from these 2 reports, side by side? One, the old adage could not be any truer: One Man’s Rubbish is another Man’s Treasure. And: True cost accounting would make a huge difference.

Biz Strategy Governance Opinions

The leadership difference: Time to Think

September 29, 2020

Research has known for a while that when someone in your presence is trying to think, much of what you are hearing and seeing is your effect on them. That is also the case for boards. Because: under the right conditions and circumstances, people will – invariably – think for themselves. Just: is that desired?

Biz Strategy Globalisation Governance Materials

Juukan Gorge and Leadership Ethics – Compound interest of: technocratic lawyers + profit focus + racism

September 22, 2020

On May 24th 2020 Rio Tinto blew up the Juukan Gorge rock shelters in Australia, which ancestors of the Puutu Kunti Kurrama and Pinikura (PKKP) people occupied over the course of 46’000 years.There are a multitude of lessons to be learned from the entire process that lead to the disastrous blast of a site of such archaeological importance. But also from how the scrutiny in its aftermaths and the have been. Here a selection of just a few to think about.

Future Fit Industries of 'Stuff': Governance, Responsibility, and the Age of Doughnut Economics