Some, however, are useful.
The word sustainability is in danger of becoming a 'garbage term', having widely divergent meanings depending on who's using it. A word with too many meanings tends to lose all meaning - more is surely less in this case.
To some people sustainability sounds stagnant, coming across as dug in - neither growing, nor changing nor adapting. To others sustainability means something entirely different - robustness, durability, constancy of purpose, even adherence to core values. Sustainability can reflect how business treats the environment in general such as through recycling and reducing waste and toxins, or it can specifically refer to reducing greenhouse gases and addressing climate change. To some, sustainability is just staying in business. Others define it more broadly, as a paradigm shift from a focus on short-term measures to an alignment to broader aims.
The problem is, no succinct definition can fit them all, so in that sense all definitions of sustainability are wrong. Yet some are useful. The one I find most useful which incorporates a lot of the above ideas - and does so in seven words: sustainability is an appreciation for systems thinking.
A system is a grouping of components and processes in the service of an aim. If it doesn't have an aim, then it's not a system; if you don't know the aim, then you can't optimize the system. If all the subsystems and sub-processes within a system are not aligned with the aim of the overall system, there will be sub-optimization, decay and the eventual destruction of the system.
In looking at the problem of sustainability, the system in question is the earth's biosphere, and embedded within it is a very powerful subsystem called the global economy. Humanity has been putting the biosphere to work in service of the aim of the global economy for centuries. But we will not achieve industrial sustainability and we will not effectively address problems like climate change until we figure how to turn that inside-out, and learn to align the global economy in service of the aim of the biosphere.
What is the aim of the biosphere? Sustainability, of course.
Friday, May 8, 2009
Monday, April 27, 2009
Climate Change Strategy - From Business For Business
This EarthDay April 22, a group of leading global businesses announced the formation of Interraction, a consortium that will advise businesses about the risks of climate change and the advantages of sustainable solutions. carbonRational is among these firms. Here is our launch announcement:
carbonRational announces the launch of InTERRAction - the first multi-disciplinary business consortium established to address climate change risk.
InTERRAction provides a collective 360 degree expertise, and will offer a unique, cross-functional perspective that is necessary to help corporations manage climate related risks and leverage the business opportunities they create. InTERRAction provides businesses with both advisory services as well as execution of its recommendations.
“Corporate sustainability efforts, if they exist at all, are often characterized by ‘silo thinking’,” said Andrew McKeon, co-founder of Interraction, and principal at carbonRational, a strategic consulting firm focusing on addressing climate change at a systems level. “Management may commission a state-of-the-art green building from their facilities department, but then neglect to orchestrate complementary changes in the departments responsible for vendor practices, product sourcing and packaging, site location and corporate development. Typically, the result is that the anticipated payback in terms of environmental impact, return on investment and risk management falls short of goal.”
Mr. McKeon noted that the group’s founding vision is to offer a comprehensive strategic approach based on the collective knowledge and experience of its membership. “As a group, we can help corporations with the difficult task of seeing the organization as a whole, which is the key to delivering sustainable shareholder value and reputation. We are replacing ‘silo thinking’ with ‘systems thinking’.”
As a starting point, Interraction uses a diagnostic tool called The Sustainability Scorecard to assess and manage climate change risk.
“The Scorecard functions like a full body scan in a medical check-up,” said Kenneth D. Makovsky, Co-Founder of the consortium, and president of Makovsky + Company, an independent communications consultancy. He noted that the Scorecard provides a snapshot of the notable risks throughout an organization, pinpointing specifically the impact climate change can have on a firm’s growth and reputation. The findings are summarized in an easy to understand risk index. The Consortium then collaborates with a client’s leadership to review the findings, identify areas of concern, and discuss options to manage any of the risks uncovered.
“Interraction is poised to counsel any business on a single area of functional expertise,” added Mr. Makovsky. “But our true power as an organization lies in our collaboration that can bring into focus the significant environmental risks and opportunities that are typically obscured by departmental myopia.”
“Interraction proposes to deliver a compelling blend of disciplines for an integrated approach to corporate sustainable practices,” commented Aaron Binkley, director of AMB’s Sustainability Programs. AMB is a beta customer of Interraction and is currently assessing the service’s applicability.
Interraction consists of top experts in Architecture, Climate Forecasting, Communications, Environmental Science, Law, Management Consulting and Engineering. Members firms include:
• Arnold & Porter: One of the preeminent law firms in the world, Arnold & Porter offers clients broad expertise in understanding the legal implications of climate change, educating and advising them on their legal status vis à vis current law, and what to expect in coming legislation.
• Buro Happold: A premier international design and engineering firm that is a global leader in balancing sustainable design and functionality, Buro Happold provides expertise in environmental impact statements, environmental management, masterplanning and design, and specialized services.
• carbonRational: A management consultancy focused on corporate strategies for climate change and sustainability based on systems thinking. carbonRational was founded by Andrew McKeon, a former systems engineer and operations specialist who for several years has been working with Al Gore and The Climate Project to raise awareness on climate change.
• FXFOWLE Architects: FXFOWLE enjoys an international recognition for excellence in design and pioneering green architecture, including the Conde Nast Building (the first green skyscraper in New York), the New York Times Headquarters (with Renzo Piano), and LEED projects representing over 12 million square feet.
• Makovsky + Company: One of the largest independent public relations, investor relations and branding consultancies in the USA, Makovsky + Co. has been engaged by corporations ranging from the Fortune 500 to emerging leaders in sustainable products and services, financial and professional services, health, and technology industries.
• Svante Scientific: founded to deliver to the private sector the quantitative information developed at Columbia University and NASA that is needed to identify opportunities and reduce risks associated with the changing global climate. The firm delivers both climate data and custom simulations of future climate change.
For more information about the consortium or The Sustainability Scorecard, please contact carbonRational at 917-750-6779 or info@carbonRational.com.
carbonRational announces the launch of InTERRAction - the first multi-disciplinary business consortium established to address climate change risk.
InTERRAction provides a collective 360 degree expertise, and will offer a unique, cross-functional perspective that is necessary to help corporations manage climate related risks and leverage the business opportunities they create. InTERRAction provides businesses with both advisory services as well as execution of its recommendations.
“Corporate sustainability efforts, if they exist at all, are often characterized by ‘silo thinking’,” said Andrew McKeon, co-founder of Interraction, and principal at carbonRational, a strategic consulting firm focusing on addressing climate change at a systems level. “Management may commission a state-of-the-art green building from their facilities department, but then neglect to orchestrate complementary changes in the departments responsible for vendor practices, product sourcing and packaging, site location and corporate development. Typically, the result is that the anticipated payback in terms of environmental impact, return on investment and risk management falls short of goal.”
Mr. McKeon noted that the group’s founding vision is to offer a comprehensive strategic approach based on the collective knowledge and experience of its membership. “As a group, we can help corporations with the difficult task of seeing the organization as a whole, which is the key to delivering sustainable shareholder value and reputation. We are replacing ‘silo thinking’ with ‘systems thinking’.”
As a starting point, Interraction uses a diagnostic tool called The Sustainability Scorecard to assess and manage climate change risk.
“The Scorecard functions like a full body scan in a medical check-up,” said Kenneth D. Makovsky, Co-Founder of the consortium, and president of Makovsky + Company, an independent communications consultancy. He noted that the Scorecard provides a snapshot of the notable risks throughout an organization, pinpointing specifically the impact climate change can have on a firm’s growth and reputation. The findings are summarized in an easy to understand risk index. The Consortium then collaborates with a client’s leadership to review the findings, identify areas of concern, and discuss options to manage any of the risks uncovered.
“Interraction is poised to counsel any business on a single area of functional expertise,” added Mr. Makovsky. “But our true power as an organization lies in our collaboration that can bring into focus the significant environmental risks and opportunities that are typically obscured by departmental myopia.”
“Interraction proposes to deliver a compelling blend of disciplines for an integrated approach to corporate sustainable practices,” commented Aaron Binkley, director of AMB’s Sustainability Programs. AMB is a beta customer of Interraction and is currently assessing the service’s applicability.
Interraction consists of top experts in Architecture, Climate Forecasting, Communications, Environmental Science, Law, Management Consulting and Engineering. Members firms include:
• Arnold & Porter: One of the preeminent law firms in the world, Arnold & Porter offers clients broad expertise in understanding the legal implications of climate change, educating and advising them on their legal status vis à vis current law, and what to expect in coming legislation.
• Buro Happold: A premier international design and engineering firm that is a global leader in balancing sustainable design and functionality, Buro Happold provides expertise in environmental impact statements, environmental management, masterplanning and design, and specialized services.
• carbonRational: A management consultancy focused on corporate strategies for climate change and sustainability based on systems thinking. carbonRational was founded by Andrew McKeon, a former systems engineer and operations specialist who for several years has been working with Al Gore and The Climate Project to raise awareness on climate change.
• FXFOWLE Architects: FXFOWLE enjoys an international recognition for excellence in design and pioneering green architecture, including the Conde Nast Building (the first green skyscraper in New York), the New York Times Headquarters (with Renzo Piano), and LEED projects representing over 12 million square feet.
• Makovsky + Company: One of the largest independent public relations, investor relations and branding consultancies in the USA, Makovsky + Co. has been engaged by corporations ranging from the Fortune 500 to emerging leaders in sustainable products and services, financial and professional services, health, and technology industries.
• Svante Scientific: founded to deliver to the private sector the quantitative information developed at Columbia University and NASA that is needed to identify opportunities and reduce risks associated with the changing global climate. The firm delivers both climate data and custom simulations of future climate change.
For more information about the consortium or The Sustainability Scorecard, please contact carbonRational at 917-750-6779 or info@carbonRational.com.
Monday, April 13, 2009
With Finance Disgraced, Whither Goest the Best and Brightest
There is much speculation about the long-term consequences of the current financial meltdown and the impact it might have on the career choices of young people today. Frank Rich in his Sunday column, while skewering Lawrence Summers as an example of the the old model of cashing-in on one's influence, quotes his replacement at Harvard, President Drew Gilpin Faust. “Find work you love,” she implored the class of 2008. The “most remunerative” job choice “may not be the most meaningful and the most satisfying.”
A day earlier, another article in the Times entitled "With Finance Disgraced, Which Career Will Be King?" also discussed the direction of top U.S. students, with some surprising findings.
According to the article, public service, government, the sciences and even teaching look to be winners, "while fewer shiny, young minds are embarking on careers in finance and business consulting."
Also, graduate schools of government and public policy are seeing a surge of applications. And those top students who are deferring graduate school may be choosing to join "Teach for America", which has seen a surge in applications.
Beyond the "disgrace" of finance, another big trend pushing young people in a new direction are public problems, which the article says is being influenced by everything from the 9/11 attacks to climate change.
“There is a big crop of people, like me, who grew up in a different time when public policy and public issues have been at the center of things.” So says Matthew McKnight, a young Dartmouth alum who joined the Marines upon graduation, and is now headed to Harvard for a joint degree in business and public policy.
Don Chamberlin, a professor of computer science at the University of California at Santa Cruz recalled that back in the early 1960s when he was choosing a career, a technical professional was respected and well paid. Money, he said, was part of the equation. “But the bigger part of the motivation for me,” he said, “was that I would be doing exciting and important work and that my contributions would be appreciated.”
It is refreshing to see that people - especially younger people - are understanding that our future - as a society and as a planet - depends on what I would term an appreciation for systems thinking. Our society is weakened when we groom an elite to create vast wealth for themselves, while we ignore long-term political, economic and ecological problems. The individual myopic pursuit of fast money was exemplified by far too many young graduates from the 1980's until recently. Now it seems today's newly matriculated are looking longer-term, and realizing that the opportunities of the 21st century are going to be in solving big problems, requiring joint efforts between the public and private sectors.
When it comes to making career choices, our current President provides a good study. As Rich points out in his column yesterday "Obama turned down the lucrative career path guaranteed to the first African-American president of The Harvard Law Review to pursue the missions of service and teaching instead. The potential rewards for our country, now that that early choice has led him into the White House, are enormous."
I certainly hope so.
A day earlier, another article in the Times entitled "With Finance Disgraced, Which Career Will Be King?" also discussed the direction of top U.S. students, with some surprising findings.
According to the article, public service, government, the sciences and even teaching look to be winners, "while fewer shiny, young minds are embarking on careers in finance and business consulting."
Also, graduate schools of government and public policy are seeing a surge of applications. And those top students who are deferring graduate school may be choosing to join "Teach for America", which has seen a surge in applications.
Beyond the "disgrace" of finance, another big trend pushing young people in a new direction are public problems, which the article says is being influenced by everything from the 9/11 attacks to climate change.
“There is a big crop of people, like me, who grew up in a different time when public policy and public issues have been at the center of things.” So says Matthew McKnight, a young Dartmouth alum who joined the Marines upon graduation, and is now headed to Harvard for a joint degree in business and public policy.
Don Chamberlin, a professor of computer science at the University of California at Santa Cruz recalled that back in the early 1960s when he was choosing a career, a technical professional was respected and well paid. Money, he said, was part of the equation. “But the bigger part of the motivation for me,” he said, “was that I would be doing exciting and important work and that my contributions would be appreciated.”
It is refreshing to see that people - especially younger people - are understanding that our future - as a society and as a planet - depends on what I would term an appreciation for systems thinking. Our society is weakened when we groom an elite to create vast wealth for themselves, while we ignore long-term political, economic and ecological problems. The individual myopic pursuit of fast money was exemplified by far too many young graduates from the 1980's until recently. Now it seems today's newly matriculated are looking longer-term, and realizing that the opportunities of the 21st century are going to be in solving big problems, requiring joint efforts between the public and private sectors.
When it comes to making career choices, our current President provides a good study. As Rich points out in his column yesterday "Obama turned down the lucrative career path guaranteed to the first African-American president of The Harvard Law Review to pursue the missions of service and teaching instead. The potential rewards for our country, now that that early choice has led him into the White House, are enormous."
I certainly hope so.
Monday, March 30, 2009
GM and 21st Century Managment ...
The following is an article written by Dr. Gipsie Ranney. Dr. Ranney is a consultant in Nashville Tennessee and was a close associate of Dr. W. Edwards Deming with whom she collaborated for over a decade. The article is entitled 'Remembering Nummi'. Nummi was a joint venture between GM and Toyota back in the early 1990's. With all today's talk about whether and how taxpayers should be bailing out the American auto industry, I believe you will find Dr. Ranney's thoughts and perspective well worth your time and consideration.
Sunday, March 29, 2009
Heretics and Climate Change
In today's New York Times Magazine (Sunday, March 29, 2009) readers will find an article on Freeman Dyson entitled “Civil Heretic” . Clearly the world needs heretics - especially when they are geniuses and even if they are sometimes flat-out wrong. Dyson is a world renowned scholar and physicist, and has worked at Princeton's prestigious Institute for Advanced Study (the type of place that has hired people like Albert Einstein)for over 50 years. Dyson has recently come out saying that he believes the dangers of human-induced climate change have been greatly exaggerated.
The article is worth reading, but take note of a quote at the end. Dyson is quoted saying “But I knew Roger Revelle. He was definitely a skeptic. He’s not alive to defend himself.” Dr. Roger Revelle was Al Gore’s professor at Harvard and Gore often refers to him as the person who first introduced him to the idea that a build-up in the Earth's atmosphere of human-induced greenhouse gases might have long-term catastrophic consequences. By saying that Revelle was a skeptic is Dyson's way of saying Gore is wrong, or worse a liar.
I point my readers to an article published by the New York Times on July 25, 1977 entitled “Scientists Fear Heavy Coal Use May Produce Adverse Shift in Climate.” The article discusses a 281 page report written by Dr. Roger Revelle and other members of the National Academy of Sciences warning of “Highly adverse consequences” for the planet’s climate system were the world to continue to burn coal through the 21st century. The Times went on to report that Revelle, who authored the summary of findings, advocated early action “which was needed because it would take decades to narrow the uncertainties and then a full generation to move to new sources of energy, if that, as expected proves necessary.”
I can not know for sure that Dyson is wrong about the danger of climate change. What do know for sure is that he was very wrong about Roger Revelle.
The article is worth reading, but take note of a quote at the end. Dyson is quoted saying “But I knew Roger Revelle. He was definitely a skeptic. He’s not alive to defend himself.” Dr. Roger Revelle was Al Gore’s professor at Harvard and Gore often refers to him as the person who first introduced him to the idea that a build-up in the Earth's atmosphere of human-induced greenhouse gases might have long-term catastrophic consequences. By saying that Revelle was a skeptic is Dyson's way of saying Gore is wrong, or worse a liar.
I point my readers to an article published by the New York Times on July 25, 1977 entitled “Scientists Fear Heavy Coal Use May Produce Adverse Shift in Climate.” The article discusses a 281 page report written by Dr. Roger Revelle and other members of the National Academy of Sciences warning of “Highly adverse consequences” for the planet’s climate system were the world to continue to burn coal through the 21st century. The Times went on to report that Revelle, who authored the summary of findings, advocated early action “which was needed because it would take decades to narrow the uncertainties and then a full generation to move to new sources of energy, if that, as expected proves necessary.”
I can not know for sure that Dyson is wrong about the danger of climate change. What do know for sure is that he was very wrong about Roger Revelle.
Wednesday, March 25, 2009
Business As Usual
President Obama has stated that part of addressing this financial crisis is making all parties realize that "business as usual" is finished. This message was largely directed to Wall Street bankers who scooped up billions of $$$ in the "good" times that brought about this crisis, and then expected the gravy train to continue even now in the depths of the abyss.
But the term business as usual is not new to those concerned about climate change. As a matter of fact it has been used by the IPCC (Intergovernmental Panel on Climate Change) for the last 20 years. They even coined the acronym BAU to indicate what can not be sustained by the planet's climate system to insure long-term stability.
Unfortunately we are still following business as usual here in the U.S. Not only have we not committed to capping CO2, we are ignoring great warnings that change is happening even faster than was previously believed possible. A recent conference in Copenhagen saw the esteemed economist Lord Nicholas Stern revise his 2006 "Stern Review" projections on the cost of not addressing climate change. Guess what? They're up by 50%! This made huge headlines in Europe and around the world.
In the U.S., however there was hardly a mention of it.
Sounds like BAU to me.
But the term business as usual is not new to those concerned about climate change. As a matter of fact it has been used by the IPCC (Intergovernmental Panel on Climate Change) for the last 20 years. They even coined the acronym BAU to indicate what can not be sustained by the planet's climate system to insure long-term stability.
Unfortunately we are still following business as usual here in the U.S. Not only have we not committed to capping CO2, we are ignoring great warnings that change is happening even faster than was previously believed possible. A recent conference in Copenhagen saw the esteemed economist Lord Nicholas Stern revise his 2006 "Stern Review" projections on the cost of not addressing climate change. Guess what? They're up by 50%! This made huge headlines in Europe and around the world.
In the U.S., however there was hardly a mention of it.
Sounds like BAU to me.
Monday, March 16, 2009
The Best and the Brightest ...
I know this is supposed to be a blog about addressing climate change, so why do I continue to harp on executive compensation patterns? Because it is at the heart of how we structure our economy and reflects what we value as a society. One of the reasons we stand at the edge of the abyss of economic ruin today is because of compensation patterns, and one reason our economy has thus far failed to regulate greenhouse gases and deferred addressing the urgent threat of climate change is also directly related to how we compensate executive leadership.
Corporate management is never going to be able to address long-term issues like climate change and sustainable development without an appreciation for systems thinking. What happened to AIG was the result of the creation of a culture that abandoned any such appreciation for systems thinking and replaced it with a myopic focus on maximizing short-term results. In a toothless regulatory environment greed took over, more was better than less, so AIG kept doing more - and the final results speak for themselves.
Today's headline in the Wall Street Journal "AIG to Pay $450 Million in Bonuses" points to the absurdity if not obscenity of what is still going on. Mr. Liddy, AIG's CEO wrote to Treasury Secretary Tim Geithner that AIG "cannot attract and retain the best and brightest talent … if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury." Where have I heard that term before - the best and the brightest? Oh yeah, that was the title of David Halberstam's insightful and excellent book on how America was dragged into the abyss of Vietnam by really smart people. Was it not AIG's best and brightest - people like Joe Cassano - who created this catastrophe? TPM Muckraker referred to this ilk as the Axis of Weasels financial engineers who risked all their firm's money, engineered personal fortunes for themselves and then left Joan and John Q. Taxpayer to absorb all the risk?
Now we're supposed make sure some of these very same guys get bonus and retention pay of over $1 Billion? Absurd! No, OBSCENE! And God help the planet if this is the way corporate America is run in the 21st century.
Late breaking news from the NY Times: President Obama seeks to block AIG bonuses.
Corporate management is never going to be able to address long-term issues like climate change and sustainable development without an appreciation for systems thinking. What happened to AIG was the result of the creation of a culture that abandoned any such appreciation for systems thinking and replaced it with a myopic focus on maximizing short-term results. In a toothless regulatory environment greed took over, more was better than less, so AIG kept doing more - and the final results speak for themselves.
Today's headline in the Wall Street Journal "AIG to Pay $450 Million in Bonuses" points to the absurdity if not obscenity of what is still going on. Mr. Liddy, AIG's CEO wrote to Treasury Secretary Tim Geithner that AIG "cannot attract and retain the best and brightest talent … if employees believe that their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury." Where have I heard that term before - the best and the brightest? Oh yeah, that was the title of David Halberstam's insightful and excellent book on how America was dragged into the abyss of Vietnam by really smart people. Was it not AIG's best and brightest - people like Joe Cassano - who created this catastrophe? TPM Muckraker referred to this ilk as the Axis of Weasels financial engineers who risked all their firm's money, engineered personal fortunes for themselves and then left Joan and John Q. Taxpayer to absorb all the risk?
Now we're supposed make sure some of these very same guys get bonus and retention pay of over $1 Billion? Absurd! No, OBSCENE! And God help the planet if this is the way corporate America is run in the 21st century.
Late breaking news from the NY Times: President Obama seeks to block AIG bonuses.
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