Scienze Umane e Sociali MIM Green Economy /Clean economy for reshaping society Lecture 4: Case studies; summary and overview Prof.ssa Carmen Pasca

2 Lecture 4 Plan for today Group Projects: presentation and discussion. Summary and overview.

3 Conclusions 1 World circumstances have changed dramatically ‒ caused by the challenging economic realities. Our global society is today confronted with the new interconnected realities in political, economic, social and environmental terms. These have strong impact on global business landscape and have shifted the cultural norms. The conclusions and implications are twofold: The public and business sectors must work together for their common good. There are many opportunities for business to profit from going green.

4 Conclusions 2 The development of new technologies has modified the whole business models in terms of strategy, profits, value creation, consumer demands, supply chains and so on. Adapt, Evolve,Transform: the disruptive technologies continue to change how companies innovate and compete. mobility, cloud, and social are disruptive forces that have built the expectation of “insight on demand”—getting actionable information into the hands of decision makers who need it, when they need it, no matter where they happen to be. new economic and business models have emerged: as a green economy with inclusive growth, green and responsible enterprises, green jobs, products and services.

5 Conclusions 3 These phenomenon request a new global governance based on ESG principles to achieve sustainable economic and business goals. Traditionally, government and business had few incentives to actively collaborate. For the most part, government regulated business and business lobbied government on areas of economic interest. Today’s challenges, including an unprecedented recession and fiscal crisis, global warming, terrorism and crises in health care and education, are changing the equation. There is a sense that these problems are increasingly complex, requiring new responses. Governments are introducing regulations to prevent future crises, and seeking innovation to execute its mission more effectively with fewer resources. There is an increasing recognition from government that it cannot solve these challenges alone. On the business side, there is also an increasing recognition that these challenges, as well as the government’s response,represent both a threat and opportunity. Both sides seem to realize that business problems are now government problems and vice versa.

6 Conclusions 4 Regulation for increasing global competitiveness and inclusive growth and avoiding global risks. Harmonisation, coordination and simplification of national regulations are necessary to contribute to a more transparent and stable business environment. Protecting the environment used to be about developing local and national regulations and subsidizing improved technology to mitigate industrial pollution. Governments are increasingly looking to business for resources and new approaches to these challenges. The business world has an incentive to help solve them, both out of a sense of social responsibility, and because they affect economic growth and the bottom line.

7 Conclusions 5 International framework The current “2020 goals” for European transition from brown to green economy include promoting renewable energies (Energy 2020, Eco Design Directive). Renewables are seen as a central resource in the quest of energy security at the international and national levels. Renewables are considered a key for facing environmental challenges in mitigating the effects of climate change. Renewables are sources of economic benefits.

8 Conclusions 6 The necessity to build green Global and European regulation and business frameworks for providing sustainable growth A common approach by politicians, business and the financial sector (banks and insurance companies) is necessary to attract more venture capital to establish new investment forms and to create more transparency, for example in eco- industry. A common approach is necessary to prevent and manage global and national risks in the context of green economy and business. In general, investors are not looking for a risk-free environment but rather one in which risks can be understood, anticipated and managed. Country risk cover: insurance against country risk should be expanded and explicitly provided to support low carbon funds. Low-carbon policy cover risk: insurance should be provided where countries renege on policy frameworks/incentive schemes that underpin low-carbon investments.

9 Conclusions 7 Dynamic green business model provides economic benefits for society: Economic benefits could be derived from the improved environmental performance of companies. Many companies have exploited business opportunities linked to sustainability and eco-innovation. Many firms have shifted from viewing their environmental obligations as a burden to seizing new opportunities for value capture, while greening their business activities and producing green goods and services. The value creation in terms of the newness of the Eco innovative product or service; its improved performance, customization and convenience in comparison to existing alternatives improved design; better price; potential cost reduction and savings; higher accessibility, offering a result or a function instead of a product; producing product or service attractive to customers and create a preference for that product or service, as compared to the alternatives.

10 Conclusions 8 Green marketing of certain products could potentially have an appreciable effect on human behavior. Consumer choices not only reflect price and quality preferences but also social and moral values. The green business model is focused on valuing waste, or using it as an input for a new product to be sold on the market. Green transformation boosts business; Green business model provides best practices Alternative energy-based systems include a wide range of applications, products and systems based on renewable energy deployment. Efficiency optimization by ICT: ICT technologies provide a wide range of solutions for energy and resource use control. Innovative financing schemes represent long- and medium-term investment arrangements often focused on the improvement of environmental performance, which is also linked to economic performance.

11 Conclusions 9 The new dynamic green business model helps in reconciling economic and ecological interests/demands in terms of sustainable development; reducing the gap between economic and social policies this model focus on employment, innovation, education, social inclusion as well as climate change. The green jobs creation: the green job market has developed very rapidly in recent years. Most of the decrease in employment has occurred in extractive and energy intensive industries. On the contrary, products associated with a green economy usually tend to be more labour intensive than products associated with fossil-fuel based industries

12 Overall conclusion The message from all of this (viewing the situation from the point of view of business) is that the present situation, which is seen by some as a looming environmental crisis, can be interpreted as a growing business opportunity. At the same time, cooperation with the public sectors is crucial, to create regulatory systems, that help, rather than hinder, the transition to a green economy. This conclusion will appeal to the market liberals and the Institutionalists, though it will not particularly appeal to the Bioenvironmentalists and the Social Greens. They would want more drastic action. What do you think?

Lecture 4 Arrivederci 13