Presentation on theme: "Economic Transformation: One Based on Clean Energy Sources."— Presentation transcript:
Economic Transformation: One Based on Clean Energy Sources
Its All about business drivers, scarcity, and intention
Whats It Mean? Sustainability: Mother lode of a term Doing Business Better, Living Life Better Green: When you are aware of your daily choices and how they impact the environment. When its cynical, its called green-washing. Clean Tech: Knowledge-based products and services that improve operational performances while reducing waste. Clean Energy: Sources that release little or no pollutants. Solar, Wind, Geothermal, Tidal, Wave, Hydroelectric, Biomass. Smart Grid: A way to measure energy consumption and address energy independence and resilience issues. Energy Efficiency. We cant make the gains if we dont figure a way to reduce consumption
New Environmentalism Characterized by greater precision in factoring environmental costs and benefits into policy and corporate decision making. Puts communities at the center of environmental strategies. Diagnoses and addresses behavioral causes that exacerbate environmental challenges Recognizes political AND business dimensions of environmental reform
How Do You Know Its Real? Non-profits: Doing good has never been so popular Start-ups: Theres a new dot com in town New corporate attitudes: From B-corps to social capital markets Brand and process overhauls: Its no longer about what was Born Green brands: No longer just on cooperatives shelves Investor owned utilities: Incubating the future companies New world of EE: Water and energy efficiency Renewables & alternative energy: Wind turbines replacing oil derricks
The Business Drivers
A Business Paradigm Shift Green Tech Gets Serious: Something big is shifting in the business of the environment clean-energy innovation is emerging as the new front in the global economic fight. March 7, 2011
Green Investment Still Strong January 2012 Pike Research estimates that approximately 57 million customers worldwide will use social media to engage with utilities in 2011, and that number is expected to rise to 624 million customers by the end of A newly fielded survey indicated strong fundamental interest in PEVs, with 40% of participants stating that they would be extremely or very interested in purchasing such a vehicle, assuming the price were right. Driven by public policies that encourage a greater emphasis on energy efficiency to reduce costs and improve operations, the ESCO market is expected to continue to grow faster than the domestic economy and reach $16 billion in sales by Worldwide revenue from building energy management systems will increase at a compound annual growth rate (CAGR) of nearly 14% through the rest of this decade, reaching just under $6 billion a year by 2020.
Europe Trends Strong for Sustainability Despite the sluggish economy, spending by large firms in the UK on energy, environment and sustainability initiatives is set to increase by 12 percent in 2012, by contrast the UK economy is only expected to grow by only 0.6 percent. (2012 report)
Economic Reality The clean economy, which employs some 2.7 million workers, encompasses a significant number of jobs in establishments spread across a diverse group of industries. Though modest in size, the clean economy employs more workers than the fossil fuel industry and bulks larger than bioscience but remains smaller than the IT-producing sectors. "Sizing the Clean Economy," was published July 12, 2011 by The Brookings Institute and BattelleSizing the Clean Economy The Brookings InstituteBattelle
Purpose is now the fifth P in the marketing equation - joining product, place, price, and promotion. Purpose allows deeper consumer engagement with brands, allowing the opportunity for citizen participation in solutions. Mitch Markson, Edelmans chief creative officerMitch Markson
Follow the Money Biofuels reached $56.4 billion in 2010 and are projected to grow to $112.8 billion by 2020 Wind power is projected to expand from $60.5 billion in 2010 to $122.9 billion in Clean tech's percentage of total U.S. venture capital investments continues to rise, accounting for 23.2 percent of total U.S. venture activity in $37 billion was allocated for renewables by the federal government in $850 billion will be spent in China in the next decade on renewables. States: CO is the 4th largest employer of clean tech workers. MI had a 5.7% increase in clean tech sector jobs as almost all other categories were neutral or net loss..WSJ Next Big Thing List: Suniva (crystalline solar), eSolar (solar thermal), MiaSolé (thin film solar), Opower Inc. (energy efficiency software), GreatPoint Energy Inc. (coal gasification), SeaMicro Inc. (energy efficient data servers), Boston-Power Inc. (lithium-ion batteries), Luxim Corp. (energy-efficient lighting), Sapphire Energy Inc. (algae).
$100 billion in energy projects allocated in 18 months
2012 Predictions Renewables will start to win over the jobs argument Moms green clout becomes significant Car sharing becomes viable Commodity prices become an ally Efficiency pays for itself Secure homes become smart homes LEDs inch towards acceptance Green software begins to make sense Water issues tied to worldwide humanitarian crises Some big names, and some not so big make the business headlines
Global CO2 Impact Will Demand Big Solutions
Catastrophic Impact of Resource Depletion The world's population has reached 7 billion and is forecast to rise to over 10 billion by 2050, putting even more strain on global resources. The problem of over-consumption in high income countries has produced an ecological and financial debt. Health concerns: Increased hunger due to food yield changes will lead to malnutrition; water scarcity will deteriorate hygiene; pollution will weaken immune systems. We are losing three species an hour. A mere 0.5% of the total water on the planet is easily accessible for human use.
CRM: Cause-Related Marketing Purpose must now be engrained into the core of a company or brands proposition. It is no longer enough to slap a ribbon on a product. It must be authentic, long-term and participatory Edelman Good Purpose Global Study 80% of Americans are likely to switch products where price and quality are equal when cause is presented with the product Cone Cause Evolution Study In a year when volunteering went up as charitable donations went down, consumers are clearly demonstrating that they still want to give, but in different ways. Look for brands to develop programs that engage consumers instead of simply cutting a check or asking for donations. The Category is Set to Change Dramatically, adage.com, June 4, 2010
B Corporations A new type of corporation that use the power of business to create public benefit
The Stakeholder-Driven Business Case for Sustainability and CSR
How To Be Green! Keep it real. Transparency is the word. Read your lifes experiences through green colored glasses. Create an opportunity. Volunteer, intern, contribute. Be mission-driven and find your career match. Network. Network. Network. Show it with how you spend your money.
Its Cool to Be Ethical in 2012 When Harvard MBAs make a pledge to do no harm and Eastern Michigan University school of business hosts anEthos Week, isnt this evidence of a profound business paradigm shift and dont you want to do unto future generations as you would have them do unto you with your next career move?