Lecture 1: Why does this matter:
Three big forces
o Climate change – and the other environmental limits
Its an emergency – “scientists have moral obligation to clearly warn
humanity of any catastrophic threat to ‘tell it like it is.’
Driven mainly by our use of energy
We need repaid de-carbonization – 5 main groups of action to
decarbonize economy:
Energy supply: low carbon generation – switch to electricity –
carbon capture and storage
Industry: reduce consumption – improve energy efficiency + fuel
mix – improve resource efficiency – carbon capture + storage
Buildings: improve heating/cooling – improve energy efficiency
and fuel mix – design for efficiency
Transport: energy efficiency and fuel switching – reduce demand
– switching modes of transport – improve vehicle loads
Land use: reduce deforestation – reduce pasture – improve crop
yields – increase crop-land biomass
Climate isn’t only environmental issue: planetary boundaries
o A bigger, more connected population, more urbanized – and social inequality
Social forces: population growth – urbanization and connectivity
Larger mass urbanization in history: about 1mill people move to
cities every week
Cities – major driver for economic growth: in emerging markets,
city dwellers may have 3x the income of rural counterparts
Cities consume 75% of world’s natural resources – produce 50%
of world’s waste
We also more connected than previous generations thru
migration and trade flows – good for growth but potentially more
volatile
Inequality
Rapid economic development and exits from poverty
BUT: the world is still very unequal
We need to find a way to make development work for planet
Inequality has some significant consequences:
o Economy: research is mixed but there does not seem to be
evidence that unequal societies do better – there’
evidence of negative consequences that have a cost
o Social mobility & education: educational scores are higher
in rich, equal countries – inequality leads to poor
educational outcomes – thus poor social mobility
o Crime: violent crime and property crime are higher in
societies that are less equal
, o Health: overall levels of health are worse in unequal
societies – there are specific problems related to obesity,
poor mental health and infant morality
o Trust and happiness: income inequality changes the way
people interact w/ each other, leading to less trust and
lower voter participation – there’s some evidence – also
leads to lower level so of happiness
o Technology innovation and diffusion creating new solutions – and new
problems
Technological forces – will we innovate our way out of this?
Resource efficiency as a driver of change: new materials + energy
sources
o re-shaping industry structures and rise of ‘platforms’
AI/Machine learning: 1.2bn jobs could be replaced w/ current
technology
o re-structuring the of nature of work
Rapid technology diffusion – time radio took to reach 50m users –
38 years – time twitter took to reach 50m users – 9 months
o very rapid pace of change – outpacing our ability to
solve unethical or regulatory problems
o What can you do? – the problems are systemic but there are things:
Find major items in your own carbon footprint and change them:
food/travel/consumption + waste: water energy clothes/ restoration
(plant trees and restore habitats)
Use your vote or other civic engagement
If you are able to invest – choose what to invest in
Consider how you wish to use your time/talents
A vision for the future:
o Business is the doughnut: a safe and just space for humanity
Suggest a new way of thinking about economic growth
Develops the idea of planetary boundaries by adding social foundations
This means that as we work on development, we should be ensuring a
basic standard for conditions for humanity and not exceeding planetary
boundaries
Implications for business:
o What this means for role of business:
Business will not be as usual
Significant constraints on resource availability
Pressure from regulators and/or stakeholders
Massive need for innovation – both at the product level and
business mode level
But this innovation also creates new ethical challenges
Potential role for business in solving problems
Three big forces
o Climate change – and the other environmental limits
Its an emergency – “scientists have moral obligation to clearly warn
humanity of any catastrophic threat to ‘tell it like it is.’
Driven mainly by our use of energy
We need repaid de-carbonization – 5 main groups of action to
decarbonize economy:
Energy supply: low carbon generation – switch to electricity –
carbon capture and storage
Industry: reduce consumption – improve energy efficiency + fuel
mix – improve resource efficiency – carbon capture + storage
Buildings: improve heating/cooling – improve energy efficiency
and fuel mix – design for efficiency
Transport: energy efficiency and fuel switching – reduce demand
– switching modes of transport – improve vehicle loads
Land use: reduce deforestation – reduce pasture – improve crop
yields – increase crop-land biomass
Climate isn’t only environmental issue: planetary boundaries
o A bigger, more connected population, more urbanized – and social inequality
Social forces: population growth – urbanization and connectivity
Larger mass urbanization in history: about 1mill people move to
cities every week
Cities – major driver for economic growth: in emerging markets,
city dwellers may have 3x the income of rural counterparts
Cities consume 75% of world’s natural resources – produce 50%
of world’s waste
We also more connected than previous generations thru
migration and trade flows – good for growth but potentially more
volatile
Inequality
Rapid economic development and exits from poverty
BUT: the world is still very unequal
We need to find a way to make development work for planet
Inequality has some significant consequences:
o Economy: research is mixed but there does not seem to be
evidence that unequal societies do better – there’
evidence of negative consequences that have a cost
o Social mobility & education: educational scores are higher
in rich, equal countries – inequality leads to poor
educational outcomes – thus poor social mobility
o Crime: violent crime and property crime are higher in
societies that are less equal
, o Health: overall levels of health are worse in unequal
societies – there are specific problems related to obesity,
poor mental health and infant morality
o Trust and happiness: income inequality changes the way
people interact w/ each other, leading to less trust and
lower voter participation – there’s some evidence – also
leads to lower level so of happiness
o Technology innovation and diffusion creating new solutions – and new
problems
Technological forces – will we innovate our way out of this?
Resource efficiency as a driver of change: new materials + energy
sources
o re-shaping industry structures and rise of ‘platforms’
AI/Machine learning: 1.2bn jobs could be replaced w/ current
technology
o re-structuring the of nature of work
Rapid technology diffusion – time radio took to reach 50m users –
38 years – time twitter took to reach 50m users – 9 months
o very rapid pace of change – outpacing our ability to
solve unethical or regulatory problems
o What can you do? – the problems are systemic but there are things:
Find major items in your own carbon footprint and change them:
food/travel/consumption + waste: water energy clothes/ restoration
(plant trees and restore habitats)
Use your vote or other civic engagement
If you are able to invest – choose what to invest in
Consider how you wish to use your time/talents
A vision for the future:
o Business is the doughnut: a safe and just space for humanity
Suggest a new way of thinking about economic growth
Develops the idea of planetary boundaries by adding social foundations
This means that as we work on development, we should be ensuring a
basic standard for conditions for humanity and not exceeding planetary
boundaries
Implications for business:
o What this means for role of business:
Business will not be as usual
Significant constraints on resource availability
Pressure from regulators and/or stakeholders
Massive need for innovation – both at the product level and
business mode level
But this innovation also creates new ethical challenges
Potential role for business in solving problems
